AUDUSD: The Australian dollar was modestly lower late Friday as economic growth in the resource-rich country’s biggest trade partner, China, slowed to its weakest pace since the global financial crisis.
China’s gross domestic product slowed to 7.6% on-year in the second quarter, down from 8.1% in the first quarter and its lowest level since the beginning of 2009.
The data were in line with economists’ expectations, prompting the China-sensitive Australian dollar to trade 0.3% higher against the U.S. currency than earlier in the session, but not enough to recover all of its overnight losses. At 0500 GMT the local unit was at US$1.0168 from US$1.0182 late Thursday and at Y80.60 from Y80.92.
We expect a range for today in AUDUSD rate of 1.0200 to 1.0310 (Previously, we bought AUDUSD at 1.0190, target was 1.0280 and 1.0350)
We set limit SELL order for AUDUSD at 1.0310
Stop loss at 1.0360
Target at 1.0280 and 1.0220
EURUSD: Founded in the wake of World War II, the IMF has been dominated by the U.S. and Europe for decades. Europe and the U.S. will still hold the majority of power at the IMF, which will soon have a total resource base of around $1 trillion dollars.
But as emerging nations increasingly help drive the global economy and contribute more lending resources to the IMF–largely to lend to Europe in recent years–they have called for greater voice and vote at the fund. Some countries have already gained seats at the 24-member executive board, including China, India, Russia and Brazil.
A governance reform deal agreed in 2010 plans to give many emerging markets even greater power, however. For example, once the 2010 agreement is fully ratified, China will be the third-strongest member by voting rights and Russia will get a greater say in IMF operations. Europe also tentatively agreed then to give up two of its eight seats on the executive board.
We expect a range for today in EURUSD rate of 1.2185 to 1.2350
We set limit BUY order for EURUSD at 1.2185
Stop loss at 1.2130
Target at 1.2260 and 1.2290
USDJPY: The U.S. Federal Reserve’s economic forecast and monetary policy stance will no longer be sustainable if the economy continues on its current path, Federal Reserve Bank of Atlanta President Dennis Lockhart said in prepared remarks Friday.
The central bank should be cautious in deciding to launch new programs designed to boost the economic recovery, Mr. Lockhart said Friday in remarks prepared for a speech to the Mississippi Economic Council. But the risks associated with the Fed expanding its portfolio of assets are manageable, he said, and may be needed if the economic recovery does not accelerate.
We expect a range for today in USDJPY rate of 78.80 and 79.40
We set limit BUY order for USDJPY at 78.80
Stop loss at 78.20
Target at 79.40 to 79.80
