AUDUSD: The Australian dollar was sharply lower late Tuesday after the Reserve Bank of Australia cut interest rates for the first time in more than two years, fine-tuning policy settings as inflation risks fade.
The RBA cut its benchmark interest rate to 4.50% from 4.75%, a move that was in line with market expectations and brought to an end a year of steady policy. Most economists don’t expect the RBA to cut at its December policy meeting, but many warned that if conditions in Europe soured or unemployment rose locally, it may see the need for another cut.
We expect a range for today in AUDUSD rate of 1.0265 to 1.0390 (We expect the pair to head north from this point)
We entry LONG AUDUSD at 1.0335
Stop loss at 1.0280
Target at 1.0390, 1.0430, 1.0480
EURUSD: The biggest opposition party in the Netherlands Tuesday threatened to withdraw its crucial support for the euro zone’s anti-crisis deal if Greece goes ahead with a referendum over its bailout program.
European leaders last week hammered out an agreement to contain the debt-crisis in the euro zone. Under the deal, Greece’s debt will be restructured, the euro zone’s bailout fund will get a boost and banks will have to bolster their capital buffers.
We expect a range for today in EURUSD rate of 1.3650 to 1.3770 (We have minor support at 1.3650
Set a limit BUY for EURUSD at 1.3650
Stop loss at 1.3610
Target at 1.3710, 1.3770, 1.3820
USDJPY: The better-than-expected third-quarter U.S. GDP numbers was welcomed news to investors.
However, this was offset by the recent news of the possibility of a failed Greek referendum,
which reignited worries about the sovereign debt crisis in Europe.
We expect a range for today in USDJPY rate of 77.90 to 78.80 (Yesterday, we entry long position at 78.20, we decide to get out of the trade today)
Long USDJPY at 78.20 (Already closed out at 78.35)
Stop loss at 77.80
Target at 78.35, 78.65
