AUDUSD: The Australian dollar pushed below parity with the U.S. dollar for the first time since Oct. 12 on Friday, weighed down by continued nervousness about Europe.
At the centerpiece of the most recent worries were two bond sales overnight, with Spain paying nearly as much as Greece, Portugal and Ireland to sell EUR3.563 billion in 10-year bonds. That sale had bond yields all over the European region surging once again.
We expect a range for today in AUDUSD rate of 0.9965 TO 1.0080 (We bought our trade at 1.000 ranges, and closed at 1.0080 last friday)
Set NEW BUY order at 0.9885
Stop loss at 0.9830
Target at 0.9940, 1.0020
EURUSD: After slowly paring bets the euro would fall against the dollar in recent weeks, speculative investors once again ramped up those anti-euro positions. The net short euro position, or bets the euro will fall against the dollar, jumped 37% during the week ended Nov. 15, according to the CFTC’s Commitment of Traders report released each Friday.
Concerns about the European debt crisis remain at the forefront of investors’ minds, driving positioning across multiple assets. Even though the euro has held up relatively well in the spot market in recent weeks as Italy and Greece have installed new governments and European bond yields have surged, speculative traders are guessing it’s just a matter of time before the common currency tumbles.
The worries about European debt problems — the latest data captured Italy’s 10-year bond yield hitting 7% for the first time in the euro era — have pushed investors toward perceived safety.
We expect a range for today in EURUSD rate of 1.3350 to 1.3600 ()
Set SHORT at 1.3580
Stop loss at 1.3630
Target at 1.3470, 1.3350 (Then switch LONG at 1.3550)
USDJPY: Overall, investors held a net long U.S. dollar position of $9.3 billion against seven other major currencies, a 76% increase from the previous week.
One of the few currencies that is heavily favored against the dollar is Japan’s yen. Investors remain solidly long yen against the dollar, meaning they are betting the yen will strengthen against the greenback.
We expect a range for today in USDJPY rate of 76.80 to 77.70 (We bought one below 77.00 levels and one at 77.15 – Continued to hold our trade)
Long USDJPY at 77.00 ranges (Bought last week)
Stop loss at 76.50
Target at 77.70, 78.30
