AUDUSD: The Australian dollar climbed sharply Wednesday as Australia boasted the strongest economic growth in the developed world in the first quarter. Expectations that the world’s major central banks are moving steadily toward some form of coordinated stimulus for the global economy also gave the Aussie dollar a boost.
Strong mining investment and consumer spending resulted in a 1.3% rise in gross domestic product in the first quarter from the previous three-month period, data released Wednesday by the Australian Bureau of Statistics showed. Annual gross domestic product growth in the 1.4 trillion Australian dollar (US$1.38 trillion) economy was 4.3%, the fastest pace in over four years.
We expect a range for today in AUDUSD rate of 0.9850 to 0.9950
STAND ASIDE
EURUSD: Speculation of a Greek euro exit has stepped up since Greece’s May 6 election proved inconclusive but showed broad voter support for parties opposed to the terms attached to the country’s bailout funds.
Greece will hold a second round of elections June 17 after the parties voted in to lead in early May were unable to come to an agreement to form a coalition government. The outcome of the June elections will have significant implications for the single currency, as some parties–such as Syriza–are strongly against continuing with the austerity measures required by international creditors as a condition of providing the country with funds.
We expect a range for today in EURUSD rate of 1.2510 to 1.2610
We set to SHORT EURUSD at 1.2160
Stop loss at 1.2640
Target at 1.2540 and 1.2520
USDJPY: In the U.S. Wednesday, Atlanta Fed president Dennis Lockhart said that “further monetary actions to support the recovery will certainly need to be considered” if modest domestic growth is no longer realistic. “The situation we face requires that the [Fed’s rate-setting committee] maintain a state of readiness to respond to financial or economic instability should the need arise,” he said. Those remarks came after The Wall Street Journal reported that “a shift at the Federal Reserve [was] putting back on the table the possibility of action to spur the recovery.”
The Fed’s Beige Book report on economic conditions across its 12 districts showed the economy continued to expand at a moderate pace. On Thursday, Fed Chairman Benjamin Bernanke will appear before Congress. That comes ahead of the Fed’s next rate-setting meeting on June 19 and 20.
We expect a range for today in USDJPY rate of 79.00 to 80.00
We set limit SELL for USDJPY at 79.95
Stop loss at 80.30
Target at 79.40 and 79.10
