AUDUSD: The Australian dollar was higher late Monday, though off its peak as caution ahead of key European data reversed some of the gains in the afternoon.

The Australian dollar is still having trouble shaking off the ‘Chinese slowdown’ mindset from last week. As a result the Australian dollar is looking like it will continue to underperform other currencies in the short term

We expect a range for today in AUDUSD rate of 1.0480 to 1.0580 (Yesterday, we short the pair at 1.0460, it hit both of our target 1.0380-1.0360, the lowest was 1.0330)

WE AVOID TRADING THE PAIR TODAY

EURUSD: The euro zone is well protected from any risks stemming from the expansion of the European Central Bank’s balance sheet. Euro-zone governments must continue with credible fiscal consolidation as this will make it easier for the ECB to protect financial stability.

The euro zone is well protected because price stability is the “unambiguous” objective of the ECB, monetary financing of governments is prohibited and the ECB and the national central banks are “extremely well capitalized

We expect a range for today in EURUSD rate of 1.3200 to 1.3300 (Yesterday, we shorted the pair at 1.3290, it drop down to 1.3190 before crawling above 1.3350)

We set to SHORT EURUSD at 1.3470
Stop loss at 1.3520
Target at 1.3410 and 1.3550

USDJPY: Bernanke also said that the slow rate of wage growth is likely consistent with his view that the high rate of long-term unemployment is due to cyclical factors, rather than structural reasons. Economists generally think cyclical unemployment is caused when weakness in the overall economy pushes down demand for goods and services and therefore the need for workers that provide them. Structural unemployment reflects deeper problems, such as a gap between the skills workers have and those that employers want. Structural problems don’t disappear as the economic recovery gains traction.

“The interesting question at this point is: will the improvements we’re seeing in the labor market– will they continue to feed into consumer confidence, which we’ve seen happening to some extent, and will they start to feed into earnings?”

We expect a range for today in USDJPY rate of 82.10 and 83.10 (Yesterday, we bought long USDJPY at 81.60, it reached both of our target 82.30 and 82.60, currently sitting on 83.00 level)

WE AVOID TRADING THE PAIR TODAY
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