AUDUSD: The total number of Australian houses and apartments approved for construction rose a seasonally adjusted 8.4% in November from October, the Australian Bureau of Statistics said Tuesday.
Economists had expected on average that total residential building approvals rose 6.5% from the month before. Private-sector house approvals rose a seasonally adjusted 4.8% from a month earlier, and fell 9.6% from a year earlier.
We expect a range for today in AUDUSD rate of 1.0200 to 1.0300 (we stay out of the sideline and watch the market for today)
EURUSD: The euro bounced off near-16-month lows against the dollar in European trading Monday, but with regional worries lingering and a meeting between the leaders of France and Germany being watched, investor sentiment toward the single currency remained fragile.
There will be further concerns over the sovereign-debt situation given the risk that funding costs will continue to increase. The banking sector will remain a key focus as unrealised losses on bonds continue to undermine balance sheets and force additional capital raising.
There will be further concerns surrounding the Greek situation with open recognition that failure to secure a second bailout would trigger a Euro exit.
We expect a range for today in EURUSD rate of 1.2700 to 1.2800 (no trading today)
USDJPY: There will be further cautious optimism over the US economy. Although the Federal Reserve will maintain extremely low interest rates throughout the year and will be prepared to take further action if necessary, there will be the potential for investment inflows, especially given doubts surrounding the European economies.
Defensive considerations will remain extremely important for the US currency and there will be inflows due to underlying de-leveraging in the financial sector, especially with weaker emerging-market confidence. In this context, the dollar should be able to maintain a firm tone in the short-term.
We expect a range for today in USDJPY rate of 76.60 to 77.20
We set limit BUY order for USDJPY at 76.60
Stop loss at 76.10
Target 77.30 and 77.60
