AUDUSD: The Australian dollar rallied initially towards the 1.0650 region against the US dollar during the week, but it was unable to sustain the gains and was subjected to renewed selling pressure with a decline to two-month lows below 1.0350.
TheAustralian currency was undermined by a sharp deterioration in risk appetite following weaker than expected Chinese and Euro-zone data. There were further concerns surrounding the regional economy which contributed to selling pressure.
We expect a range for today in AUDUSD rate of 1.0320 to 1.0420 (Yesterday, we bought the pair at 1.0425 and the pair reached our target at 1.0475)
We short AUDUSD at 1.0460
Stop loss at 1.048
Target at 1.0380 and 1.036
Alternatively:
We set limit BUY order for AUDUSD at 1.0260
Stop loss at 1.0210
Target at 1.0360 and 1.0420
EURUSD: The International Monetary Fund will call on the German government in its next series of country reports to implement reforms to spur growth in the face of the country’s rapidly aging population
As Europe’s largest economy, Germany has been the region’s growth engine, but it also has one of the continent’s lowest birth rates. Statistics show its working-age population is shrinking by more than 100,000 people a year, raising fears that there will not be enough working people to support its ballooning number of retirees.
We expect a range for today in EURUSD rate of 1.3200 to 1.3300
We SHORT EURUSD at the current market price1.3270
Stop loss at 1.3310
Target at 1.3180 and 1.3150
USDJPY: For the dollar, traders bet a net $11.3 billion that the greenback will rise against other major currencies, down 37% from last week. In the yen, speculators wagered a net $3.9 billion that it will decline against the dollar. That position, a net 25,821 contracts, was worth 40% less than the prior week.
Bank of Japan Governor Masaaki Shirakawa said Saturday central banks must be careful to avoid the negative impacts of low interest rates as they seek to tame financial and economic crises with easy monetary policy.
Monetary policy designed to encourage growth, such as low interest rates or buying assets from the financial industry, can reduce the incentive for governments and the financial industry to cut excessive debt levels and delay balancing their budgets, both necessary for economic recovery.
We expect a range for today in USDJPY rate of 82.10 and 83.10
We BOUGHT USDJPY at 81.60
Stop loss at 81.10
Target at 82.30 and 82.60
