AUDUSD: The Australian dollar slid in Asian trade Tuesday, weighed down by a Moody’s downgrade of six European sovereigns. Included in the downgrade were Italy, Spain and Portugal, with the move also serving as a threat to AAA-rated UK and France.
Further weighing on the Australian currency was some disappointment from traders that China didn’t fix its currency notably stronger ahead of a key meeting between Chinese Vice President Xi Jinping and U.S. President Barack Obama meeting.
We expect a range for today in AUDUSD rate of 1.0630 to 1.0710 (Another, another, another successful win on Short AUDUSD at 1.0750, reached both target 1.0685 and 1.0630 before crawling back near 1.0750. NOTE: Any price that reach near 1.0750, we will short, that where institutional book their profit)
We set another Limit SHORT order for AUDUSD at 1.0750
Stop loss at 1.0810
Target at 1.0685 and 1.0630
EURUSD: Twelve European Union member nations, including Italy, Spain, the U.K. and France, are suffering from significant economic imbalances that leave them vulnerable to further shocks. The member states cited in the document are Belgium, Bulgaria, Cyprus, Denmark, Finland, France, Hungary, Italy, Slovenia, Spain, Sweden, and the U.K. The countries receiving financial assistance–Greece, Romania, Portugal and Ireland–were excluded.
The tighter surveillance of economies that the commission has been asked to do is to prevent a recurrence of the debt crisis. The commission has said imbalances, like persistent current account deficits, high levels of private and public debt, housing market bubbles and loss of price competitiveness “were part of the root causes of the current economic crisis.
We expect a range for today in EURUSD rate of 1.3080 to 1.3160 (Yesterday we avoid trading the pair)
We set limit BUY order for EURUSD at 1.3035 ranges
Stop loss at 1.2990
Target at 1.3080 and 1.3130
USDJPY: The Federal Reserve may have to raise rates before 2014 but it isn’t possible to put a calendar date to such an event. Central banks are supposed to take into account the longer run. These banks are coming under pressure because interest rates are at historic lows and the central banks are still being expected to do more.
The U.S. Federal Reserve shouldn’t have conditionally pledged to keep interest rates low until 2014 because the economy is improving. US economy expects to see “moderate growth” of around 3% in 2012 and 2013, “which is slightly above trend.” There could be stabilization in the housing sector “but not much improvement in 2012
We expect a range for today in USDJPY rate of 78. to 78.60 (We avoid trading the pair today)
We SHORT USDJPY at 78.40 ranges
Stop loss at 78.90
Target at 78.10 and 77.70
