AUDUSD: The Australian dollar was lower Monday as the attention of traders focused more squarely on Italy’s finances amid concerns it could deliver an even bigger shock to world confidence than the faltering Greece. All this is occurring against a back-drop of more uncertainty in Greece as markets weigh plans for the formation of a national unity government.
Earlier Monday, monthly job market survey showed total job advertisements in newspapers and on the internet fell 0.7% in October from September, the sixth fall in seven months.
The data comes less than a week after the Reserve Bank of Australia cut interest rates for the first time since early 2009 to 4.5% from 4.75% and slashed its economic growth forecasts, warning unemployment will rise.
We expect a range for today in AUDUSD rate of 1.0310 TO 1.0400 (Minor resistance at 1.0400)
Set Short at 1.0400
Stop loss at 1.0430
Target at 1.0350, 1.0310 and 1.0260
EURUSD: The Group of 20 leading economies withheld commitments to increase the resources of the International Monetary Fund last week because they wanted more action by the euro zone on its debt crisis
The statement indicates the world’s most powerful industrialized and developing economies are doing more than just urge euro-zone countries to follow through on their plan agreed in October to boost the currency area’s bailout fund, recapitalize the region’s weakest banks, and make Greece’s debts sustainable.
We expect a range for today in EURUSD rate of 1.3780 to 1.3870
Set Limit BUY for EURUSD at 1.3680
Stop loss at 1.3620
Target at 1.3720, 1.3770, 1.3820
USDJPY: U.S. banks tightened their standards for loans to their European counterparts in the third quarter as the continent’s financial crisis worsened
The Fed’s quarterly senior loan officer survey, based on 51 domestic banks and 22 U.S. branches of foreign banks, revealed that about two-thirds of banks that make loans to European banks had tightened standards for those loans in the July-to-September quarter. The results reflect growing uncertainty in financial markets over Europe’s sovereign-debt crisis.
Despite the recent easing of some standards, lending conditions remain much tighter than they were before the economy’s downturn. In particular, standards for home loans remain tight, leading many in the real-estate industry to complain that overly restrictive standards are hurting the housing market.
We expect a range for today in USDJPY rate of 77.90 to 78.30 (We expect the pair continue side way. The best way is BUY STOP above 78.40 and SELL STOP below 77.80)
BUY STOP above 78.40 and SELL STOP below 77.80
Stop loss 30 pips
Target 60 to 90 pips
