AUDUSD: The Australian dollar was higher late Wednesday after data showed the economy bounced back strongly in the second quarter from the flood ravaged start to the year.
The currency jumped on the second quarter national accounts report which showed the Australian economy expanded 1.2% in the second quarter from the first, after contracting 0.9% in the first quarter. Annual economic growth rose 1.4% on year.
Mining led the rebound, supported by stronger consumer spending, which economists said could alarm the Reserve Bank of Australia, which is watchful of inflation risks. Earlier, a speech by RBA Governor Glenn Stevens also supported the Australian dollar, with little sign the central bank is contemplating cutting interest rates.
We expect a range for today in AUDUSD rate of 1.0580 to 1.0760 (We have another successful trade yesterday where we went long at 1.0540, we have closed out too early at 1.0590. We set limit short order the pair at 1.0760, stop loss at 1.0820 and target at 1.0710, 1.0670 and 1.0620.)
EURUSD: French Prime Minister Francois Fillon Wednesday said the economic government of the euro zone must be improved before the public debt of the bloc’s members can be shared through euro-zone bonds.
Economic government of the euro zone is the precondition for putting in place any system of mutualizing debts and risks of the euro zone. Fiscally troubled euro-zone countries could “choose” to exit the currency area if they don’t take appropriate measures to fix their budgets.
We expect a range for today in EURUSD rate of 1.4000 to 1.4150 (We exit out trade yesterday when the pair reach our target at 1.4080. We will re-entry if the pair fall around 1.4000 levels, our stop loss is 1.3940, target at 1.4080, 1.4160 and 1.4230.)
USDJPY: Economic activity was sluggish in most parts of the U.S. and some areas weakened amid a slowdown in manufacturing, continued weakness in real estate and the impact of Hurricane Irene, a Federal Reserve survey showed Wednesday.
The Fed said in its latest beige book, based on anecdotes collected from business contacts and economists in the second part of July and most of August, that five of its 12 bank regions reported only “a modest or slight”
Several districts also indicated that recent stock market volatility and increased economic uncertainty had led many contacts to downgrade or become more cautious about their near-term outlooks.
We expect a range for today in USDJPY rate of 77.00 to 77.60. (We avoid trading the pair today. For those who are long term trader, shall consider entry LONG and hold on.)
