AUDUSD: The world’s second-largest economy grew by 8.9 per cent in the three months ending in December, data showed today. Although that was the slowest rate of expansion for 30 months, it exceeded analysts’ expectations of around 8.5 per cent growth.
Australian dollar extended early gains driven by a strong sale of French treasury bills overnight, despite news that the European Union’s second-largest economy was stripped of its top credit rating by Standard and Poor’s on Friday.
We expect a range for today in AUDUSD rate of 1.0320 to 1.0430 (We expect the pair to head further south toward 1.0320 ranges)
Set limit BUY order for AUDUSD above 1.0300 ranges
Stop loss at 1.0260
Target at 1.0350 and 1.0390
EURUSD: The euro was mostly firmer in European trade Tuesday, underpinned by solid German and Chinese economic data, but it struggled to make much headway against the dollar as the euro zone crisis continued to weigh on investor confidence.
The euro then briefly touched $1.28 after monthly data showed a sharp improvement in German investor sentiment, suggesting Europe’s biggest economy would stabilize in the next six months rather than deteriorate, as had been signaled previously.
But the single currency then eased back as the euro-zone sovereign debt crisis loomed large again for currency traders, despite solid treasury bill auctions from the Kingdom of Spain and the euro-zone’s emergency bailout fund.
We expect a range for today in EURUSD rate of 1.2620 to 1.2800 (Once again, we have another great trade for the EURUSD yesterday, where we enter above 1.2700, reached our target at 1.2780. )
We set limit order to short EURUSD at 1.2800
Stop loss at 1.2840
Target at 1.2740 and 1.2710
USDJPY: Dollar/yen options fell slightly on Tuesday in Asia as stronger-than-expected Chinese gross domestic product data eased global growth concerns and decreased upward pressure on the safe-haven Japanese unit.
China said its economy expanded by 8.9% during the fourth quarter last year, beating the market consensus for a 8.6% increase. Some investors had expected the country’s growth rate to fall below 8%.
With global growth concerns easing, traders said the lower risk of a yen rise in the near term prompted investors to sell hedging contracts.
We expect a range for today in USDJPY rate of 76.60 to 77.20 (We got hit by stop loss losing 15 pips)
We RE-enter long USDJPY at the current market price 76.80
Stop loss at 76.20
Target 77.20 and 77.60
