AUDUSD: Australia on Monday launched a campaign to lure more tourists from China as it seeks to boost the industry that has suffered from the strong Australian dollar.
Total inbound tourism is worth around 30 billion Australian dollars (US$28.9 billion) year to the Australian economy, or 2% of gross domestic product and the country attracted a record 580,400 Chinese tourists in the last year, according to Australian Bureau of Statistics.
We expect a range for today in AUDUSD rate of 0.9680 to 0.9810
We BUYAUDUSD at 0.9720 ranges
Stop loss at 0.9680
Target at 0.9770 and 0.9830
EURUSD: Investors grew increasingly worried about the euro zone’s fiscal crisis last week, pushing their positions to new records on the Chicago Mercantile Exchange in both the dollar and the euro, government data showed Friday.
Speculators at the CME held a net $31.8 billion in bets that the euro will decline against the dollar, up 2.3% from the previous week, or 203,415 contracts, as of May 29. They also held a net position worth $37.97 billion wagering that the dollar will appreciate against other major currencies, up 7.4% from the week before, according to the Commodity Futures Trading Commission’s weekly report on the commitments of traders. Both those positions were the largest of their kind since at least 2007.
We expect a range for today in EURUSD rate of 1.2450 TO 1.2510
We SELL EURUSD at 1.2490 ranges
Stop loss at 1.2510
Target at 1.2450 and 1.2420
USDJPY: Despite government reports of weaker growth in payrolls, a compilation of U.S. labor indicators continues to gain ground, May employment trends index increased 0.29% to 108.34 from a revised 108.03 in April, first reported as 108.04.
Demand for U.S. factory goods fell again April to the lowest level in half a year, a worrying sign for a sector that has been a steady source of job creation during the economic recovery.
For the yen, traders held a net $1.78 billion in gambles that the Japanese currency will decline in value. That represented 11,330 contracts, down 36.6% from the week before.
We expect a range for today in USDJPY rate of 78.10 to 78.60
We BUY USDJPY at the current market price 78.30 ranges
Stop loss at 77.90
Target at 78.80 and 79.20
