AUDUSD: Australian dollar are also expected to come under pressure with the additional risk that July unemployment data at 0130 GMT could open the way for the Reserve Bank of Australia to lower interest rates before the end of the year.
With a cash rate target of 4.75%, Australian interest rate are among the highest in the developed world. The market has buzzed this week about the potential for an emergency interest rate cut if conditions in markets continue to spiral uncontrollably.
Australian consumers expect prices to rise 2.7% over the next 12 months, within the central bank’s 2%-3% target band, down from 3.4% in July.
We expect a range for today in AUDUSD rate of 1.0000 to 1.0300 (We avoid trading the pair unless it fall into 0.9960-1.0030, we likely to go long in those areas. However, they might be a potential to move toward 1.0350 areas)
EURUSD: The euro continued to weaken in early Asian trading Thursday as investors braced for another wild ride on Asian share markets, fueled by a sense that various actions and comments by central banks around the world to calm nerves have amounted to little.
Another reacting to reports that the maturity of Greek government bonds in a debt exchange may be extended to 2024. Another increase in the cost of insuring French debt against default was also weighing on the banks
More broadly, dollar weakness persisted in European hours after Fed officials signaled Tuesday that they were committed to keeping rates at their current, exceptionally low levels “at least through mid-2013,” suggesting policymakers will continue to support efforts to lift the struggling U.S. economy.
We expect a range for today in EURUSD rate of 1.4080 to 1.4300 (Bullish outlook: The pair like to have great support at 1.4060, we set price to buy at 1.4060, stop loss at 1.3980, target at 1.4130 , 1.4215 and 1.4300)
USDJPY: Dollar/yen options were off highs marked earlier Wednesday in Asia, but remained elevated as the chance of the Japanese yen strengthening further remained considerable following the Federal Open Market Committee meeting Tuesday.
The Federal Reserve pledged to keep interest rates near zero, at least through mid-2013. Fed officials also downgraded their assessment of the U.S. economy for the third time this year, saying economic growth so far this year has been “considerably slower than the committee had been expected.”
The U.S. is taking measures that allow the greenback to weaken, while Japan intervened in the market to weaken its own currency last week, raising the question of whether the Group of Seven industrialized nations is united.
We expect a range for today in USDJPY rate of 76.30 to 77.50 (We continue to hold our trade since last week, bought at 76.80, we trial our stop loss to 76.20 to protect the trade, target remain at 77.20, 77.80 and 78.20)
