AUDUSD: The Australian dollar maintained a strong tone during the week and challenged levels above the 1.07 level against the US currency. International risk appetite was stronger which helped underpin the local currency as fears surrounding the international growth outlook eased.
Domestically, there was a slide in building approvals following a strong gain the previous month while new home sales declined. ThePMI data was more encouraging than in recent months as the manufacturing and services indices were both above 50.
We expect a range for today in AUDUSD rate of 1.0700 to 1.0800 (we expect the pair to move up during Aussie market opening, could reach 1.0780)
We shorting AUDUSD above 1.0760 ranges
Stop loss at 1.0810
Target at 1.0700 and 1.0660
EURUSD: The Euro-zone data as a whole has shown some improvement, but the gains have again been focused to a large extent in Germany as peripheral economies remain stuck in recession.
Speculative traders pulled back last week on their bets against the euro, wagering a net $25.8 billion that the common currency will continue to decline against the dollar, government data showed Friday. That followed weeks of record-setting positions betting against the euro, as the currency union’s leaders battle a crippling sovereign-debt crisis.
We expect a range for today in EURUSD rate of 1.3080 to 1.3180
Short at 1.3120 ranges
Stop loss at 1.3280
Target at 1.3070 and 1.3030
USDJPY: Emerging market currencies strengthened Friday after a key U.S. jobs report showed robust signs of the U.S. economy’s recovery
The overwhelmingly positive surprise gives a boost to expectations for the U.S. economic recovery, which has cheered markets and also provided some support for currencies linked to growth.
We expect a range for today in USDJPY rate of 76.00 to 76.60 (Last week we bought USDJPY at 76.20, we decide to close out at the current market price 76.60 ranges)
