AUDUSD: The Australian dollar was sharply lower late Tuesday as a tame domestic inflation print fueled market expectations for a series of interest rate cuts over the coming year.
The consumer price index rose 0.1% in the first quarter of 2012 from the fourth quarter of 2011 and climbed 1.6% from a year earlier, the Australian Bureau of Statistics said earlier Tuesday. Economists had expected an increase of 0.6% on quarter, according to a median consensus.
We expect a range for today in AUDUSD rate of 1.0280 to 1.0420 (Yesterday, we got hit stop loss and break even, but then we re-entry again on our signal service)
We re-BUY AUDUSD at 1.0276 (closed the position at 1.0330)
Stop loss at 1.0280 (from 1.0220)
Target at 1.0330 (hit the targey)
EURUSD: The European Union commission is set to ask for an increase of around 7% in the EU’s annual budget on Wednesday, a move likely to trigger a chorus of disapproval from European capitals.
At a time when governments across Europe are embarking on drastic austerity measures to rein in their debts and deficit, the EU’s executive is set to propose raising its budget by between 6.8% and 7%, according to EU sources.
The move would increase the budget to at least EUR138 billion. The figure is well above the 4.9% increase in actual payments the commission demanded in 2011 for this year, and which it failed to secure.
We expect a range for today in EURUSD rate of 1.3150 to 1.3250 (Yesterday, we sold EURUSD at 1.3205 and closed out at 1.3125)
We SELL EURUSD at 1.3220
Stop loss at 1.3260 from
Target at 1.3150 to 1.3110
USDJPY: Sales of new homes in the U.S. slipped in March after the previous month’s figures were revised dramatically upward, raising hopes the struggling market may be improving a bit.
Despite the monthly decline, sales were better than expected. Economists surveyed by Dow Jones Newswires had forecast an annual rate of 320,000, which would have been a 2.2% gain over the initial February reading of 313,000.
February sales were revised to show a 7.3% increase from the prior month to a rate of 353,000–the best since November 2009.
We expect a range for today in USDJPY rate of 80.50 to 81.80
We BUY USDJPY at 81.10 ranges (We closed out at 81.55)
Stop loss at 81.13 (from 80.70)
Target at 81.30 and 81.70 (closed out at 81.55)
