AUDUSD: Australian consumers are as gloomy now as they were in mid-2011 when fears of a sovereign default in Europe were escalating and threatening to unleash a fresh period of international turmoil.
The RBA’s failure to deliver an interest rate cut in April is the likely reason for the loss of confidence. Confidence of borrowers fell 5.1% in April, the survey showed. Over the last 12 months the average standard variable mortgage rate in Australia has fallen by 0.4% yet the confidence of respondents who hold a mortgage has fallen by 14.6%.
We expect a range for today in AUDUSD rate of 1.0220 to 1.0320
We enter AUDUSD at 1.0270
Stop loss at 1.0220
Target at 1.0320 and 1.0370
EURUSD: The dollar was broadly firmer in European hours Tuesday as currency traders belatedly digested Friday’s weak U.S. jobs data after a long weekend and as renewed worries about Spain’s and Italy’s economic health weighed on the euro.
Those concerns, which also dragged on European equities and pushed up Spanish borrowing costs, weighed on the common currency, which sank below $1.31 against the dollar and traded at its weakest against the yen in just over a month.
We expect a range for today in EURUSD rate of 1.3100 to 1.3200 (Yesterday, we got out EURUSD at 1.3130 before it knock back down to 1.3040. We expect the pair to have a ground support at 1.3030-50 ranges0
We re-entry EURUSD at 1.3080
Stop loss at 1.3020
Target at 1.3130 to 1.3180
USDJPY: Underlying confidence in the US economy should remain firm in the short-term, especially if there is a robust reading for the latest employment data. There will be reduced expectations that the Federal Reserve will embark on further quantitative easing which will help underpin yield support. There will still be important doubts surrounding the medium-term outlook and the Fed will move quickly to embark on fresh action if there is evidence that demand is faltering again. The global growth outlook will also have an important impact on the dollar. Persistent doubts surrounding the Asian and Euro-zone outlook will tend to underpin the US currency.
The dollar dipped significantly at the beginning of the week, but there was solid buying support on dips and there were net gains for the week as a whole against European currencies, although it was difficult to secure strong gains.
We expect a range for today in USDJPY rate of 81.20 to 81.00
We set limit BUY order for USDJPY at 80.30
Stop loss at 79.60
Target at 80.80 and 81.30
