AUDUSD: The Australian dollar rattled higher in thin new-year trade Tuesday, reaching its highest level since December 8 against the greenback and setting fresh highs against the euro.
Traders said a slightly better risk tone was behind the buying, but attributed most of the sharp movement down to thin liquidity as markets reopen after the holiday period. China and Japan remained closed on Tuesday.
We expect a range for today in AUDUSD rate of 1.0280 to 1.3380
Set to short position at 1.0380,
Stop loss at 1.0420
Target at 1.0320 and 1.0280
EURUSD: An agreement on the debt deal is essential for Europe and the IMF to consider lending Greece more than the EUR110 billion promised under the current program and that Athens needs to pay off its mounting debt.
Greece hopes to reach a deal on a voluntary bond swap this month, aiming to cut EUR100 billion off its debt over time. The IMF could cut Athens’s ratio of debt to gross domestic product to a sustainable level of 120%, from a peak of more than 160%. But that was before it changed its economic forecasts downward.
We expect a range for today in EURUSD rate of 1.3000 to 1.3100
Set a short position at 1.3100
Stop loss at 1.3135
Target at 1.3040 and 1.3000
USDJPY: Federal Reserve officials will begin to publish their forecasts for interest rates later this month, part of a communications revamp that could help bolster the fragile U.S. economic recovery.
Fed officials will tell the public when they expect short-term interest rates to rise from near zero given their projections for economic growth, unemployment and inflation, minutes of the Fed’s Dec. 13 policy meeting showed Tuesday. They will start to make the rate forecasts public after the next meeting of the Fed’s decision-making body Jan. 24-25.
We expect a range for today in USDJPY rate of 76.60 to 77.50 (We continue to hold our long position at 76.90)
Set additional long position at 76.30
Stop loss at 75.70
Target 76.80 and 77.20
