AUDUSD: A softer tone for risk appetite meant the Australian dollar was slightly weaker late in the local session Thursday but remains within its recent range as dealers wait on the results of a French debt auction due later.
News flow was light during local trade. Profit takers sent the Aussie a touch lower after November’s trade figures disappointed. The seasonally adjusted trade surplus came in at A$1.38 billion compared with a surplus of A$1.42 billion in October, according to the Australian Bureau of Statistics. The figure was lower than analyst expectations of a surplus of A$1.65 billion.
We expect a range for today in AUDUSD rate of 1.0200 to 1.0310
Set limit BUY order for AUDUSD at 1.0215
Stop loss at 1.0160
Target at 1.0310 and 1.0360
EURUSD: Euro-zone government debt markets suffered their first real hit of the new year Thursday amid recurring concerns over the solidity of the region’s banking system and the threat of Hungary and Greece defaulting on their debt.
Spain and Italy, meanwhile, are both expected to begin their 2012 financing next week in increasingly unfavorable markets. Spain is looking to raise around EUR3.5 billion in a new three-year Bono sale Jan. 12, while Italy aims to raise around EUR7.5 billion from a sale of three-year, four-year and 15-year BTPs Jan. 13.
We expect a range for today in EURUSD rate of 1.2730 to 1.2860
Set limit BUY order for EURUSD at 1.2640 ranges
Stop loss at 1.2580
Target at 1.2770 and 1.2830
USDJPY: The U.S. Federal Reserve’s balance sheet fell slightly over the last week as the central bank moved forward with a plan to adjust its portfolio and propel economic growth.
Holdings of U.S. Treasury securities fell to $1.663 trillion on Wednesday from $1.672 trillion a week before. The central bank’s holdings of mortgage-backed securities rose to $837.74 billion from $837.30 billion.
The Fed’s portfolio has more than doubled since the financial crisis of 2008 and 2009, as the central bank bought mortgage and government bonds to keep interest rates low and stimulate the economy.
We expect a range for today in USDJPY rate of 76.60 to 77.50 (We decide to closed out USDJPY at 77.17 where we bought last 76.90)
