AUDUSD: The Australian dollar was lower late Wednesday after the country’s second trade deficit in a row fueled fears the economy is slowing sharply.
Australia, which is counting on an outsized export performance to fan its growth, recorded a trade deficit of 480 million Australian dollars (US$493.2 million) in February, the Australian Bureau of Statistics said earlier Wednesday.
The Australian dollar fell sharply after the trade data, extending a week-long slide which puts it now at its lowest levels since mid-January. At 0630 GMT, the Australian dollar was trading at US$1.0254, down from an earlier intraday high of US$1.0332 and US$1.0397 late Tuesday
We expect a range for today in AUDUSD rate of 1.0220 to 1.0350
We set limit BUY order for AUDUSD at 1.0220
Stop loss at 1.0160
Target at 1.0270 and 1.0330
EURUSD: The euro came under more pressure in European trading hours Wednesday as a disappointing auction from Spain added to the gloomy tone set overnight after minutes from the latest Federal Reserve policy meeting dented expectations of further stimulus in the U.S.
The euro lost ground against other major currencies Wednesday after European Central Bank President Mario Draghi warning of the downside risks to economic growth.
The euro sank to as low as $1.3109 against the dollar, its weakest since Mar. 16 while it also traded below Y108 against the yen. Against the pound, the common currency traded as low as GBP0.8270, its weakest level since Feb. 6.
We expect a range for today in EURUSD rate of 1.3080 to 1.3190
We set limit BUY order for EURUSD at 1.3080
Stop loss at at 1.3020
Target at 1.3145 to 1.3230
USDJPY: It is essential for the Federal Reserve to provide strong stimulus to the economy under current economic circumstances.
Another round of quantitative easing, typically referred to as “QE3,” was still a possibility. The support for such a program would depend upon ongoing economic developments
We expect a range for today in USDJPY rate of 81.50 to 82.40 (We went long yesterday at 81.80, it hit both of our target 82.30 and 82.60)
We set limit BUY order for USDJPY at 81.80
Stop loss at 81.30
Target at 82.40 and 82.80
