AUDUSD: The Australian dollar was lower late Thursday, reflecting a fresh wave of jitters in global stock markets after a failed bond auction in Germany overnight and more ratings-agency warnings about France’s credit standing.
At 0700 GMT, the Australian dollar was trading at US$0.9717, down from US$0.9764 late Wednesday. Against the yen, the currency changed hands at Y74.91, down from Y75.217.
The central bank cut its benchmark interest rate at the start of November, warning that the events unfolding in Europe were a major threat to the economy. Investors are keen to see if its rhetoric has changed since then.
We expect a range for today in AUDUSD rate of 0.9660 to 0.9780 (The Aussie is likely to see further, a possible as far as US$0.9550 in the near term. However, minor support at 0.9700 region
Limit BUY order for AUDUSD at 0.9660
Stop loss at 0.9610
Target at 0.9730, 0.9780
EURUSD: The International Monetary Fund Thursday welcomed a commitment by the head of Greece’s main opposition party to support the government’s reform agenda, signaling a resolution to a three-week standoff that had blocked the payment of badly needed aid for the country.
At stake was an EUR8 billion aid tranche promised by the IMF and Greece’s euro-zone partners–the sixth installment of a EUR110 billion bailout the country received last year in exchange for cutting its deficit and overhauling its economy.
We expect a range for today in EURUSD rate of 1.3200 to 1.3390
Set Limit BUY order for EURUSD at 1.3200
Stop loss at 1.3130
Target at 1.3270, 1.3360
USDJPY: Orders for durable goods continued to fall in October, as demand for big-ticket items like planes remains weak amid a lackluster economic recovery.
Consumer spending slowed in October as incomes rose at the fastest pace since March, showing that Americans were cautious about opening their wallets amid glum news about the European debt crisis and continued high unemployment.
U.S. workers filed more new applications for unemployment benefits last week, though the pace of layoffs might offer some hope for the weak jobs market.
We expect a range for today in USDJPY rate of 76.80 to 77.70 (We close both trade where we bought at 77.15 and below 77.00, closed trade at 77.55)
We set long below 77.00
Stop loss at 76.30
Target at 77.50, 77.80
