AUDUSD: The Australian dollar was little changed late Thursday with attention focused on global equities markets and some traders predicting a brief pause in the uncertainty that has dominated trading over recent weeks.

Asian share markets were stronger Thursday after France and Germany moved to assure the world they would support Greece’s debt restructuring and maintain efforts to insure it remains within the European community.

Local data Thursday was mostly negative for the Australian dollar with an inflationary expectations survey adding to arguments that the Reserve Bank of Australia should be in no hurry to raise interest rates.

We expect a range for today in AUDUSD rate of 1.0220 to 1.0360 (We bought the pair yesterday at 1.0220 ranges and booked the profit at 1.0345. We expect the pair to head toward 1.0500 next week.)

EURUSD: European stock markets soared Thursday, with banking shares adding strong gains, after a dollar-liquidity effort by the world’s major central banks eased some pressure off European banks’ funding problems.

However, speculation has been rife that banks were running low on dollars to fund operations. Analysts have warned that banks’ exposure to distressed European sovereign debt could unleash a financial cataclysm that ran the risk of sending an already weak global economy spiraling into recession. Those fears converged with Greece’s long-running financial distress, which investors fear could lead to a disorderly restructuring or default.

We expect a range for today in EURUSD rate of 1.03760 to 1.3880 (We expecting the pair to head south, after strong move over night.)

USDJPY: The Federal Reserve’s latest weekly money supply report Thursday shows seasonally adjusted M1 rose by $12.7 billion to $2.137 trillion, while M2 rose $21.5 billion to $9.591 trillion.

Stocks and commodities rose, as investors who had dumped riskier assets for gold and the dollar reversed those trades on the prospect of a coordinated central bank effort to lubricate Europe’s banking system with more dollars.

Safe harbor assets, however, took a pounding. Benchmark U.S. 10-year note prices fell sharply, yielding about 2.097% as traders responded more to bearish consumer price data than the ECB’s surprise move to enhance liquidity.

We expect a range for today in USDJPY rate of 76.20 to 77.20 (We expect the pair to head further north toward 77.20. Yesterday, the pair spike up to 77.20 reach our target, we bought at 76.7 ranges. We now re-enrty the trade at the current market price 76.70 ranges, stop loss at 75.80, target at 77.20-77.60.)

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