AUDUSD: The Australian dollar pushed higher in the last trading session of 2011, boosted by improving data on U.S. housing and employment.
Further helping the local currency, and sentiment about the Australian economy, Australian house prices saw the first monthly rise in a year in November, buoyed in part by the first cut in interest rates from the Reserve Bank of Australia since early 2009. For November, the RP Data-Rismark capital city home value index rose 0.1% from October, the first increase since 2010.
We expect a range for today in AUDUSD rate of 1.0130 to 1.0260
We Set to short below 1.0200,
Stop loss at 1.0260
Target at 1.0130-50
EURUSD: Manufacturing activity in the euro zone declined for the fifth straight month in December. Purchasing Managers Index for the sector rose to 46.9 from 46.4 in November, in line with expectations and below the 50.0 threshold that distinguishes an expansion from a contraction. Over the fourth quarter, the average PMI for manufacturing was the weakest since the second quarter of 2009.
The threat of a new recession already prompted the European Central Bank to cut its key interest rate in November and December. Its governing council meets next week, and is expected to ease policy again.
We expect a range for today in EURUSD rate of 1.2870 to 1.2945
Set long at 1.2870
Stop loss at 1.2820
Target at 1.2945, 1.3000 and 1.3050
USDJPY: Options were slightly lower Friday in Asia amid thin trading at the year-end as the underlying spot rate remained steady.
Benchmark, one-month at-the-money dollar/yen options were at 7.50%/7.85% from 7.60%/8.00% late Thursday in New York.
Meanwhile, one market participant bought a dollar-call/yen-put options contract to expire Jan. 9 in New York at a strike price of 78.00 with implied volatility of 7.00%.
We expect a range for today in USDJPY rate of 76.60 to 77.50
We entry LONG at the current market price 76.90
Stop loss at 76.50
Target 77.40-60
