AUDUSD: The Australian dollar was lower Tuesday after the Reserve Bank of Australia told markets again there is scope to cut interest rates further if the economy begins to stumble.
But the modest decline came despite news from Greece that European finance ministers had finally bolted together a rescue package for the debt-ridden country.
Economists generally expect the RBA will keep its powder dry at least until May when it will have a view inflation data for the first quarter. There will be more continued threaten the Australia economy in coming months due to thousands of job axe!
We expect a range for today in AUDUSD rate of 1.0630 to 1.0730 (We have a great short on the AUDUSD above 1.0800 where the pair hit both our target at 1.0730 amd 1.0680)
We set to shorted AUDUSD 1.0730
Stop loss at 1.0780 (from 1.0860)
Target remain the same at 1.0650 and 1.0615
EURUSD: Marathon talks in Athens secured a new EUR130 billion (US$171.9 billion) bailout and debt-restructuring deal for Greece, supported by a target to slash the country’s debt-to-GDP ratio of 120% by 2020.
The focus will now switch to the implementation of the austerity measures that underpin the Greek funding agreements. Deeply unpopular, the austerity measures could be watered down as the country will hold elections around April.
Still, for now it looks likely that Greece will be able to meet its obligation for bond redemption scheduled for mid-March, which removes a major fear for markets globally.
We expect a range for today in EURUSD rate of 1.3180 to 1.3260
We set to short EURUSD above 1.3280 ranges
Stop loss at 1.3320
Target at 1.3230 and 1.3190
USDJPY: The world’s third-largest foreign-exchange trading bank has slashed its forecasts for the yen on both the one-month and three-month horizon, citing surprise monetary easing steps from the Bank of Japan.
Regardless of the reasons behind the BOJ’s sudden switch in attitude, the quantities involved in their potential asset purchases are significant and we expect aggressive deployment of the balance sheet to meet their inflation mandate
We expect a range for today in USDJPY rate of 79.00 TO 80.00
We set to short USDJPY above 80.00
Stop loss at 80.30
Target at 79.60 and 79.30
