AUDUSD: The Australian dollar slid broadly Tuesday as the country’s central bank kept interest rates steady and failed to meet market expectations that the bank would signal an increasing likelihood of rate hikes down the road.
After trading in a narrow range for much of the morning, the Australian dollar fell quickly as though the RBA flagged a clear tightening bias with rates; it signaled it may hold off until volatility in global markets eases.
Additional total number of Australian houses and apartments approved for construction fell a seasonally adjusted 3.5% in June from May, the Australian Bureau of Statistics said Tuesday. Economists had expected on average that total residential building approvals rose 3.0% from the month before. Private-sector house approvals fell a seasonally adjusted 3.2% from a month earlier and fell 12.3% from a year earlier.
We expect a range for today in AUDUSD rate of 1.0650 TO 1.0800 ( We continued the same view as the pair will head further down toward 1.0700 areas, a minor support at the region. Fail to support will head further down toward 1.0550. We set limit BUY order at 1.0550, stop loss 1.0500, target upside 1.0620 toward 1.0750)
EURUSD: A toxic mix of global economic growth concerns and worries about the euro-zone sovereign debt crisis sent riskier currencies into a tailspin in European trading Tuesday, with the euro hitting a fresh-all-time low against the Swiss franc.
Jean-Claude Juncker, chairman of the group of 17 nations that use the euro, will meet with Italian finance minister Giulio Tremonti Wednesday in Luxembourg to discuss the euro-zone debt crisis. The meeting comes as yields on Italian sovereign bond are near record highs since the creation of the euro zone, raising fears that Italy will need help financing its debts.
Worries about the euro-zone sovereign debt crisis sent Italian and Spanish bonds yields to their widest levels since the inception of the common currency, while default insurance costs for Italy and Spain hit record highs.
We expect a range for today in EURUSD rate of 1.4120 TO 1.4200 (Yesterday, we have view the pair heading toward 1.4160 when the pair was 1.4270 ranges. Note: the pair might slightly fall toward 1.4000 areas. We set limit BUY order at 1.4020, stop loss at 1.3960, target upside at 1.4130-70)
USDJPY: Americans cut their spending by the most in nearly two years during June, and their incomes barely increased, a sign economic growth will remain disappointing into the second half of 2011.
Incomes rose 0.1%, indicating Americans might not spend much going forward. Joblessness in the U.S. is high, as are gasoline prices. Consumer spending is a big engine of the economy, and if people continue to keep their wallets shut, growth would remain sluggish.
The economy grew little in the first half of the year, with government estimates last week showing gross domestic product rose 0.4% in the first quarter and 1.3% in the second quarter.
With the recovery so weak, underlying inflation remained benign. The price index for personal consumption expenditures excluding food and energy costs increased 1.3% on a year-over-year basis in June. The index is watched closely by the Federal Reserve. On a monthly basis, the inflation gauge rose 0.1% in June from May.
We expect a range for today in USDJPY rate of 76.90 to 77.70 (We avoid trading the pair today. We expect the pair moving sideway)
