AUDUSD: The Australian dollar ended below 99 U.S. cents Wednesday for the first time since December after Greece failed to form a coalition government, with new elections expected in June.
The political and economic uncertainty in Europe, coupled with a slowdown in China–Australia’s biggest customer for its vast mineral deposits–is weighing heavily on the local unit, which has declined 11 out of the last 13 trading sessions.
We expect a range for today in AUDUSD rate of 0.9910 to 1.0050
We Bought AUDUSD at 0.9930 (continued to hold)
Stop loss at 0.9860
Target at 0.9980 and 1.0030
EURUSD: The head of the International Monetary Fund said Wednesday the fund had conducted a technical assessment of a possible Greek exit from the euro zone, but warned it would be “extremely expensive” and the fund is hoping Athens’s new government will commit to its bailout program.
The specter of Greece potentially leaving the monetary union rose again last week after Greece’s newly elected political leaders couldn’t form a government, with strong gains for politicians who say they are against agreeing to the terms of a joint European Union-IMF bailout.
We expect a range for today in EURUSD rate of 1.2680 to 1.2760 (The pair continued to head further south, could head toward 1..2650 and 1.2500)
STAND ASIDE
USDJPY: Federal Reserve officials in April flagged concerns over U.S. fiscal policy, and cited economic uncertainty as a reason to stick with their policy plans, according to minutes of their last policy meeting released Wednesday.
While Fed officials have indicated they aren’t planning to take any immediate new actions to spur economic growth. Fed officials appeared divided on several economic questions. One topic of debate at the April meeting was how much of the weakness in the job market would ease when the economic recovery accelerates.
We expect a range for today in USDJPY rate of 79.80 to 80.50
STAND ASIDE
