AUDUSD: A majority of Australian corporates expect the exchange rate to remain strong against the greenback through 2012 and want to lock in hedging strategies.
Some 68% of smaller businesses, or those in the A$25 million to A$150 million-sized range, are planning to hedge their Aussie dollar exposure compared with just 40% in July 2010. The Aussie dollar has soared in recent years and has appreciated 80% against the U.S. dollar since its trough during the 2008 financial crisis.
We expect a range for today in AUDUSD rate of 1.0500 to 1.0610 (Yesterday, we bought audusd at 1.0510 range and closed out at 1.0550)
WE AVOID TRADING THE PAIR TODAY
EURUSD: The Italian and German leaders agreed that key steps have been taken to fight the euro-zone crisis, but stressed that more action and coordination is needed in Europe, with a focus on combining fiscal stability, growth and job creation.
The idea of an EU-wide financial transaction tax, also known as a Tobin tax, has been backed by several EU members including Germany and France while others, including the U.K., Sweden and Denmark, have opposed its introduction.
We expect a range for today in EURUSD rate of 1.2990 TO 1.3120 (We bought at 1.3120, and closed out at 1.3170)
We set limit BUY order for EURUSD at 1.3010
Stop loss at 1.2950
Target at 1.3060 and 1.3110
USDJPY: The dollar rose Tuesday after the Federal Reserve, in a widely expected decision, kept its accommodative monetary policy stance intact. In the immediate wake of the decision, the dollar rose to its strongest peak against the yen since April 2011, above Y83, up 0.85% on the session. The idea that the Fed could decide to unveil new stimulus measures later–even if the Fed’s Open Market Committee deferred in the near term–helped to curb the dollar’s gains.
In a near-unanimous decision, the Fed opted to keep interest rates near rock-bottom levels until 2014, even as policymakers acknowledged the improvement in labor markets and a “temporary” uptick in inflation. Yet they cautioned that risks remained, which prompted nine out of 10 Fed officials to vote to preserve the central bank’s easy-money position.
We expect a range for today in USDJPY rate of 81.90 and 82.60 (We expect the pair to head further north but limited)
WE AVOID TRADING THE PAIR TODAY!
