AUDUSD: The Australian dollar was lower Monday after China set a lower economic growth target for this year and traders braced for a deluge of data and central bank meetings.
China Premier Wen Jiabao said in a speech the government is aiming for economic growth of 7.5% this year, after targeting an 8% expansion for each of the last eight years, in a widely expected move that indicates an willingness to reconcile with slower growth in exchange for more balanced and sustainable development.
Traders were also hesitant to take on fresh risk ahead of the Reserve Bank of Australia’s policy meeting Tuesday.
We expect a range for today in AUDUSD rate of 1.0620 to 1.0720 (yesterday we bought AUDUSD at 1.0660, the pair fall low to 1.0656 and currently sit at 1.0669. We suggest to close and reset new limit buy order)
We re-set limit BUY order for AUDUSD at 1.0620
Stop loss at 1.0580
Target at 1.0680 and 1.0720
EURUSD: Doubt about euro-zone countries’ commitment to austerity and reform efforts have been a key factor behind widening bond spreads that have made it very difficult, or in some cases impossible, for countries such as Greece, Portugal, Ireland, Spain and Italy to get funding in markets.
Because of the worsening credit situation in the country, Portuguese banks have also struggled. That has pushed them to rely more on funding lines from the European Central Bank. Portugal is increasingly vulnerable even with support from the ECB for the country’s sovereign debt and banking system,
We expect a range for today in EURUSD rate of 1.3190 to 1.3270 (As mentioned last week that the pair likely to head south toward 1.3200 when it was 1.3340)
We entry long EURUSD at 1.3210 ranges
Stop loss at 1.3170
Target at 1.3270 and 1.3310
USDJPY: The U.S. non-manufacturing sector in February expanded at the fastest pace in a year, according to data released Monday by the Institute for Supply Management.
U.S. factory orders took the biggest tumble in more than a year in January as demand for steel, machinery and other big-ticket items fell.
Orders were down 1.0% in January to a seasonally adjusted $462.58 billion the Commerce Department said Monday. It was the first month that orders fell by a full percentage point since October 2010.
We expect a range for today in USDJPY rate of 81.20 and 81.90
We SHORT USDJPY at the current market price 81.55
Stop loss at 81.90
Target at 81.10 and 80.70
