AUDUSD: Australian-dollar denominated investments: huge overseas institutional investors, both public and private, loading up on Australian assets – and a record surge in investors buying our government bonds – the reward for our fiscal discipline in uncertain global times.
The Australian dollar will likely stay high for years to come as investors use it to bet on China’s growth and as record foreign investment flows into the nation’s bonds.
We expect a range for today in AUDUSD rate of 1.0640 to 1.0740
We short AUDUSD above 1.0700
Stop loss at 1.0760
Target at 1.0640 and 1.0600
EURUSD: Measures to boost growth will be added to the E.U. fiscal compact at a European summit in March. The pact was approved by 25 of 27 E.U. member states on Monday, but has been criticized as concentrating solely on deficit-busting tactics rather than on restarting the stagnant euro-zone economy.
We expect a range for today in EURUSD rate of 1.3100 to 1.3210 (Yesterday, we set a short position at 1.3160, we continued to hold our short position)
Short at 1.3160 (continued to hold our position)
Stop loss at 1.3230
Target at 1.3100 and 1.3050
USDJPY: The debt limit increased by $1.2 trillion to $16.4 trillion Friday after the Senate shot down a resolution to block the increase.
Before an August debt-ceiling compromise, there was deep concern that Congress and the White House might not strike a deal–potentially causing widespread disruption to markets and endangering payments to government contractors, employees and retirees.
We expect a range for today in USDJPY rate of 76.00 to 76.60
Long USDJPY at 76.20 ranges (continued to hold our position0
Stop loss at 75.50 (any price below 76.00 could have been intervention from Japan)
Target 76.65 and 77.20
