AUDUSD: The Aussie lingering worries over the Chinese economy added to the negative mood after the Chinese government cut its 2012 growth forecast to 7.5%, as did the Reserve Bank of Australia’s decision to leave the door open to more interest rate cuts.
The single currency fell to a two week-low against the greenback, taking other currencies perceived as risky along with it.
We expect a range for today in AUDUSD rate of 1.0490 TO 1.0660
We set limit BUY order for AUDUSD at 1.0490
Stop loss at 1.0450
Target at 1.0580 and 1.0660
EURUSD: Greece again was the main source of market anxiety. The country’s private-sector investors have until Thursday evening to decide whether to accept a deal that would see them write down 53.5% of their existing Greek debt holdings in exchange for new bonds. If fewer than 67% of bondholders participate, there could be a disorderly Greek default this month, with hefty bond repayments due later in March.
In addition, there were creeping concerns over Spain after the government last week raised its overall 2012 deficit target to 5.8% of gross domestic product from a previously agreed 4.4%. The impact has so far been mostly limited to Spanish bonds, with yields on 10-year government paper rising above 5%, but could yet weigh on the euro
We expect a range for today in EURUSD rate of 1.3050 to 1.3150
We set limit BUY order for EURUSD at 1.3050 ranges
Stop loss at 1.3000
Target at 1.312 and 1.3180
USDJPY: The yen bucked the broader trend by moving higher against the dollar ahead of Friday’s all-important U.S. jobs report, amid growing hopes of a building U.S. economic recovery.
The Development Bank of Japan has priced its $500 million, five-year bond at 40 basis points over mid-swaps. Barclays PLC, BNP Paribas and Nomura are the lead managers on the sale.
The issuer is guaranteed by the Japanese government and is rated Aa3 by Moody’s Investors Service Inc. and AA- by Standard & Poor’s Corp.
We expect a range for today in USDJPY rate of 80.50 and 81.50 (we shorted the pair at 81.55 and reached our target at 81.10)
We set limit BUY order for USDJPY at 80.15
Stop loss at 79.50
Target at 80.70 and 81.20
