AUDUSD: it’s more likely than not that the Reserve Bank of Australia will ease policy when it holds its first meeting of 2012 on Feb. 7.
The consumer price index was unchanged in the fourth quarter of 2011 from the third quarter, and rose 3.1% from a year earlier, the Australian Bureau of Statistics said Wednesday. Economists had expected CPI to rise 0.2% from the previous quarter and 3.3% from a year earlier.
Core inflation, which attempts to remove month-to-month volatility in the data, rose by an average 0.6% in the quarter, slightly above the expected 0.5% increase. Annual core inflation climbed 2.6%, keeping it well inside the RBA’s 2%-3% target band.
We expect a range for today in AUDUSD rate of 1.0515 to 1.0615 (Note: The pair might move higher during Aussie market opening)
We set SELL STOP for AUDUSD 1.0590 (The pair currently above 1.0600)
Stop loss at 1.0630
Target at 1.0530 and 1.0480
EURUSD: Officials negotiating a Greek debt deal for private bondholders will return to Athens Thursday to continue talks, the Institute of International Finance said Wednesday.
Negotiations are gridlocked over the terms of a debt-swap deal necessary to win Athens an expanded loan program. The financing is necessary for Greece to avoid default and pay upcoming bills. The IIF is representing private bondholders.
The IIF said it is sending a team of experts to Athens “to continue negotiations with the Greek Government on legal and technical issues related to the voluntary” debt swap deal, the IIF said in a statement. The two top IIF officials negotiating the deal will also return to Athens Thursday for “informal discussions” following conversations with top government officials in Athens.
We expect a range for today in EURUSD rate of 1.3040 to 1.3160 (W expect the next move will head toward 1.2800 areas. If you place a short position, set stop loss at 1.2940)
We set to short the pair at 1.3160
Stop loss at 1.3220
Target at 1.3110 and 1.3060
USDJPY: Federal Reserve Chairman Ben Bernanke said Wednesday that another round of bond buying, often called quantitative easing, is “on the table,” but no decision has been made.
Bernanke said the Fed is prepared to take steps if the slow recovery falters or if inflation doesn’t stay around the central bank’s target of at or below 2%.
If conditions warrant, they’ll certainly consider using another round of quantitative easing, The Fed has taken that step twice in recent years in an effort to push down interest rates and stimulate economic growth.
We expect a range for today in USDJPY rate of 77.10 to 78.20
Short USDJPY at the current market price 77.70 ranges
Stop loss at 78.25
Target 77.30 and 77.10
