AUDUSD: The Australian dollar was higher late Monday supported by news Friday of better-than-expected U.S. employment data, but it trimmed gains through the Asian session on the back of a batch of mixed economic reports.
All eyes are now on the Reserve Bank of Australia amid expectations interest rates will be cut on Tuesday, which would be the third cut since November.
We expect a range for today in AUDUSD rate of 1.0700 to 1.0800 (Yesterday, we shorted the pair at 1.0760, the pair drop low to 1.0680, hit our target at 1.0700. Today, we believe the rate will NOT cut, therefore the Aussie might crawl back to its previous territory)
We set limit SHORT order for AUDUSD above 1.0785
Stop loss at 1.0840
Target at 1.0725 and 1.0685
EURUSD: Expect that Greece’s long-negotiated private-debt restructuring will be done in an orderly manner. They also believe the European Central Bank will end up restructuring its holdings of Greek bonds, a proposal that has proved very controversial over the last few weeks.
Greece to receive a second bailout from euro-area countries and the IMF, it will have to “a minimum degree of compliance with the fiscal and structural conditions of the bail-out program. Alternatively, it could choose to temporarily cede authority over certain budgetary decisions to EU/EA representatives.
We expect a range for today in EURUSD rate of 1.3080 to 1.3180 (Once again, we have another successful trade on EUR yesterday, where we shorted at 1.3120, the pair drop low hit both target 1.3070 and 1.3030 consecutively. We prefer to set another short trade below.
We set limit SHORT order for EURUSD at 1.3220
Stop loss at 1.3280
Target at 1.3170 and 1.3130
USDJPY: The ETI rose 0.73% in January to 105.81, up from December’s revised figure of 105.04 and up 5.9% from the same period last year. The index was in line with recent figures indicating the U.S. labor market emerging from a prolonged period of stagnation. On Friday, the Labor Department showed nonfarm payrolls rose by 243,000 last month, surprising Wall Street economists with its broad-based strength.
We expect sluggish growth in economic activity in the first half of 2012 and therefore we do not foresee the strengthening of the labor market to be sustained in the second quarter of 2012
We expect a range for today in USDJPY rate of 76.20 to 76.80
We set limit BUY order for USDJPY at 76.30
Stop loss at 75.60
Target at 76.80 and 77.20
