AUDUSD: The Australian dollar traded in a narrow range Thursday as a recovery from the sell-off of last week sputtered out on technical resistance.
Still, Australian bonds surged on both ends of the curve as the ongoing concern about slowing growth continued to push investors across the world into the safety of the country’s AAA-rated debt.
The Australian dollar spent much of the U.S. and European session gaining strength, only to see much of its upward momentum evaporate in Asia trading. Part of the weakness reflected profit-taking following a big move in the currency that pushed it to resistance at US$1.0550. Weak stocks in the region also weighed on the Australian dollar.
We expect a range for today in AUDUSD rate of 1.0265 to 1.0365 (We set limit BUY order at 1.0265, stop loss at 1.0200, target at 1.0315, 1.0365)
EURUSD: The Netherlands may also ask Greece to provide collateral in exchange for fresh loans were Finland to receive it. On Tuesday, Athens said it had reached a deal with Helsinki on collateral needed to secure the Nordic country’s participation in a new bailout for Greece.
Under the terms of the deal, Greece will deposit about EUR500 million in an escrow account with the Finnish state, as a precondition for releasing funds to Europe’s temporary bailout fund, which is being used to finance fresh aid for Greece.
That cash would be invested in triple-A securities over a period of about 25 years. Taking into account both the principle and accumulated interest, the Greek collateral would be equal to Finland’s contribution to the EFSF, or about EUR1.6 billion to EUR1.8 billion.
We expect a range for today in EURUSD rate of 1.4250 TO 1.4350 (We set to buy at 1.4230, stop loss at 1.4160, target at 1.4290, and 1.4350)
USDJPY: Another round of dismal economic news from the U.S. on Thursday revived worries about a slowdown in global growth, putting pressure on the currencies and debt of emerging nations like Mexico.
Treasury prices rose and yields fell dramatically as investors were rattled by U.S. data that showed that mid-Atlantic manufacturing activity contracted at a sharp pace in August, and expectations plummeted, according to a report released Thursday by the Federal Reserve Bank of Philadelphia. Home sales data also pointed to continued weakness in the U.S. housing market.
We expect a range for today in USDJPY rate of 76.40 to 72.20 (Yesterday we bought the pair at 76.60 ranges, with stop loss at 76.00, target remain at 77.90 and 77.20. Earlier today, the pair reaches 76.96, those who sold out can re-entry at the current market level)
