but the risk to financial stability is manageable.
AUDUSD: The Australian dollar drifted lower on Wednesday, weighed by a benign inflation reading and rising concerns about whether European officials would be able to come up with a comprehensive solution to Greece’s debt woes at a summit later in the global day.
From there, the currency was further hit by Australia’s third-quarter core inflation data, released at 0030 GMT, which is crucial to the central bank’s decision making. The data showed core inflation rose by a slower-than-expected 0.3% in the quarter, the lowest on record. This had several economists forecasting that the Reserve Bank of Australia would cut interest rates by 25 basis points when it next meets on Tuesday.
We expect a range for today in AUDUSD rate of 1.0300 to 1.0440 (We expect another sell off from the pair)
Set Sell at 1.0440
Stop loss at 1.0490
Target at 1.410, 1.0380, 1.0340
EURUSD: Currency markets were mostly locked in tight ranges in European trading Wednesday as investors awaited news from a long-awaited crisis summit of European leaders and grappled with global economic worries and the possibility of more U.S. monetary easing.
European leaders are expected to make an announcement some time after 1700 GMT, but while investors seem cautiously optimistic for now, analysts noted that expectations for a detailed agreement are very low.
We expect a range for today in EURUSD rate of 1.3830 to 1.3960 (We prefer to stay out of the market today, however we expect the pair to head further south, possible 1.3700 if it is fail to support at 13800 reigon.)
USDJPY: Sales of new homes rose for the first time in five months during September, but prices continued dropping, according to fresh data underscoring the persistent weakness of the depressed housing sector. Sales climbed by 5.7% on a monthly basis to a seasonally adjusted annual rate of 313,000, the Commerce Department said Wednesday.
It was the strongest pace since April, which was the last time demand rose. Sales in August fell 0.3% to 296,000, a level revised slightly upward from a previously reported 295,000. While sales increased, the median price in September for a new home fell to $204,400, down 10.4% from a year earlier. Though falling prices make property more affordable, the downward trend tends to discourage would-be buyers, who wait for a better deal.
We expect a range for today in USDJPY rate of 76.00 to 76.40 (We continued to hold our trade, since we last bought at 76.20)
We bought the pair at 76.20
Stop loss at 75.30
Target at 76.60, 76.90, 77.20
