AUDUSD: The Australian dollar fell steadily Wednesday as still heightened European jitters pushed the local currency below to parity with the U.S. dollar.
Further weighing on the Australian dollar, consumer sentiment plunged in December as rising unemployment and heightened fears linked to Europe’s debt crisis swamped news of cuts in interest rates over recent months. In addition, in an afternoon speech, Reserve Bank of Australia Deputy Governor Ric Battellino said a major crisis in Europe “can’t be ruled out,” and that the central bank remains alert to a sudden implosion of confidence in the euro-zone.
We expect a range for today in AUDUSD rate of 0.9970 to 1.0090 (Yesterday, we went long at 1.000 ranges, the pair reached high 1.00444, we bring our stop loss to 0.9980)
We re-entry the pair at 0.9900 ranges
Stop loss at 0.9830
Target at 1.0060, 1.0130
EURUSD: The euro sank below the key support level of $1.30 and slumped to fresh lows against the pound as stock markets maintained a downbeat tone and bond yields in highly indebted euro-zone states climbed in London trading hours Wednesday.
The single currency dipped as low as $1.2994–its lowest point since January–after a sustained period of pressure throughout European trading hours.
We expect a range for today in EURUSD rate of 1.2930 to 1.3080 (We avoid trading the pair)
USDJPY: U.S. import prices in November increased at the fastest pace since April as fuel costs jumped, potentially adding inflation pressure to an economy already struggling with high unemployment.
If import prices are on the rise, and push inflation, that could make it difficult for the central bank to take additional steps to spur the economy. Some officials have already called for more stimulus as concerns about high unemployment and Europe’s debt crisis persist.
Most Federal Reserve officials expect that energy and commodity prices will continue to dissipate as the global economy grows slowly. In forecasts released last month, the central bank pegged inflation to remain at or below 2.0% in 2012 through 2014, within the Fed’s comfort zone.
We expect a range for today in USDJPY rate of 77.60 to 78.20
Limit order to short the pair at 78.20
Stop loss at 78.50
Target at 77.80, 77.50
