AUDUSD: The Reserve Bank of Australia is widely expected to keep interest rates on hold tomorrow, citing strength in the economy, especially in the area of business investment. Its cash rate target currently sits at 4.25%.
Earlier this week, fourth quarter business investment data showed the mining boom is gathering momentum and is likely to accelerate further through 2012-2013. Therefore, the RBA remains cautious about further interest rate cuts.
We expect a range for today in AUDUSD rate of 1.0680 to 1.0760 (Last week we set to short the pair at 1.0845, the pair reach high to 1.0810 before knocking back toward 1.0730)
We set limit BUY order for AUDUSD at 1.0660
Stop loss at 1.0600
Target at 1.0730 and 1.0780
EURUSD: Greece’s fourth-largest lender by assets, said Friday it plans to buy back nearly half a billion euros worth of its bonds as it scrambles to boost its capital base ahead of a massive debt restructuring by the Greek state.
While the German government is considering accepting an increase in the size of Europe’s financial rescue fund. Germany may be open to expanding the size of the European Stability Mechanism to EUR700 billion ($925 billion).
The permanent rescue fund, finalized in January, aims to prevent the euro-zone debt crisis spreading throughout the 17-nation euro zone when it begins operating in July.
We expect a range for today in EURUSD rate of 1.3050 to 1.3240 (As mentioned last week that the pair likely to head south toward 1.3200 when it was 1.3340)
We set limit order to BUY for EURUSD at 1.3050
Stop loss at 1.2980
Target at 1.3120 and 1.3170
USDJPY: Speculators changed direction on the yen as of Feb. 28, wagering a net $186.9 million that the Japanese currency will continue the declining trajectory it has traced against the dollar in the last month after achieving record strength late last year, government data showed Friday.
Speculative traders on the Chicago Mercantile Exchange held a net short position in the yen for the first time since May 31, 2011, with a net 1,203 contracts betting the yen will fall against the dollar, according to the Commodity Futures Trading Commission’s weekly report on the commitments of traders.
We expect a range for today in USDJPY rate of 81.40 and 82.20
We set limit Short order for USDJPY at 82.20
Stop loss at 82.60
Target at 81.70 and 81.30
