AUDUSD: The Australian dollar weakened in Asia on Thursday amid renewed fears that emergency moves to restore Europe’s economic stability could fail.
Australian retail sales rose a seasonally adjusted 0.4% to A$20.91 billion in September from A$20.82 billion in August and rose 0.6% from A$20.44 billion a year earlier, the Australian Bureau of Statistics said Thursday.
The bureau said the trend estimate for retail sales rose 0.3% to A$20.84 billion in September on month. The trend estimate further smoothes the seasonally adjusted numbers. Sales rose 0.6% in the third quarter from the second, in chain volume terms, compared with expectations for a rise of 0.6%. Retail turnover, in volume terms, rose to A$60.57 billion in the third quarter from A$60.23 billion in the previous quarter.
We expect a range for today in AUDUSD rate of 1.0360 to 1.0480 (Yesterday, we was shorting the pair at 1.0340, the pair went down to 1.0205, the lowest target we have was 1.0240. We expect to see the Aussie heading further north, due to retails figure and the interest rate cut might be the end for this year.)
Set Long at 1.0315
Stop loss at 1.250
Target at 1.0380, 1.0420, 1.0480
EURUSD: Japanese finance minister Jun Azumi said Thursday Japan is willing to make additional EFSF purchases depending on the E.U.’s efforts to stabilize its financial sector. Speaking to reporters after Thursday’s G20 meetings in Cannes, France, Azumi said Japan is “willing to cooperate on additional purchses of EFSF depending on the E.U.’s efforts.”
Azumi also added the market may not be confident in creating a separate vehicle to leverage EFSF funds to increase the needed bailout capital, saying it is preferable “that the IMF step up rather than create a new framework” for such operations. “We’re willing to cooperate in strengthening IMF funds” if the G20 can achieve a consensus.
We expect a range for today in EURUSD rate of 1.3723 to 1.3890 (Yesterday we set to entry at 1.3650, the pair drop low 1.3668 before took off to 1.3818. We expect the pair to head up further north; however we prefer to stay out of the market today, since the EU just cut their interest rate overnight.)
USDJPY: The U.S., fearful of the spillovers on the American economy from the euro zone’s debt woes, wants Europe to build a much bigger firewall against the crisis spreading to its core economies and bulk up its banks’ capital buffers. European leaders late last month agreed to a plan they say would boost the size of the region’s EUR440 billion bailout program to EUR1 trillion by insuring a percentage of the losses for bond purchases from countries such as Italy and Spain.
But U.S. officials are concerned that Europe hasn’t moved fast enough to contain the crisis and that its efforts may not be enough to tame a potential global financial meltdown.
We expect a range for today in USDJPY rate of 77.90 to 78.80 (We continued to follow the same strategy below. The best way is BUY STOP above 78.40 and SELL STOP below 77.80)
BUY STOP above 78.40 and SELL STOP below 77.80
Stop loss 30 pips
Target 60 to 90 pips
