AUDUSD: The Australian dollar was higher late Wednesday as investors consolidated gains posted Tuesday after the central bank unexpectedly left interest rates unchanged at 4.25%, when most economists had expected a cut of 25 basis points.
Traders said the immediate focus remains on debt talks in Greece which will set the tone of markets globally once they are resolved. While the talks have dragged on longer than expected, hopes remain high Greece will accept the austerity measures required to save it from default.
We expect a range for today in AUDUSD rate of 1.0730 to 1.0825 (Expect the pair to head South next week)
We Shorted AUDUSD at 1.0785 (continued to hold our trade)
Stop loss at 1.0840
Target at 1.0725 and 1.0685
EURUSD: Currency markets were holding steady in tight ranges in European trading Wednesday as participants refrained from placing new bets without firm news of a political deal in Greece that would pave the way for a default-saving bailout.
As yet another deadline passed, the euro failed to build on the previous day’s gains against the dollar, faltering at $1.3289. But hope that the cross-party Greek talks on new spending cuts would be wrapped up soon was enough to prevent a sell-off in the single currency
We expect a range for today in EURUSD rate of 1.3080 to 1.3180
We Shorted EURUSD at 1.3250 ranges
Stop loss at 1.3310
Target at 1.3170 and 1.3130
USDJPY: The strength of that critical economic barometer, coupled with the positive trajectory of other reports, has called into question the outlook for Fed policy. In its most recent FOMC meeting, policymakers adopted a more cautious outlook for the economy and pushed out until late 2014 their expectation very low interest rates would remain in place.
The solid data have suggested the Fed may need to rethink its interest rate path. For others, odds that the Fed would grow its $2.9 trillion balance sheet through new bond purchases fell.
We expect a range for today in USDJPY rate of 76.60 to 77.30
We set limit BUY order for USDJPY at 76.60
Stop loss at 76.10
Target at 77.60 and 77.90
