AUDUSD: The Australian dollar was weaker Wednesday on news of weaker-than-expected retail sales in April, which stoked expectations of a cut in interest rates next Tuesday.
Retail sales fell 0.2% to a seasonally adjusted A$21.2 billion (US$20.7 billion), the first decline since June, the Australian Bureau of Statistics said Wednesday. Economists had forecast a rise of 0.2%.
Economists said the fall indicated earlier hopes of a recovery in consumer spending were fading. Financial markets are fully expecting the Reserve Bank of Australia to cut interest rates again next week, adding to a 50 basis point cut announced May 1. But economists are less sure, saying the RBA has time on its side for now.
We expect a range for today in AUDUSD rate of 0.9680 to 0.9810
We set limit BUY order for AUDUSD at 0.9720
Stop loss at 0.9650
Target at 0.9770 and 0.9830
EURUSD: Italian M3 growth, a broad measure of the money supply, rose only 0.28% on the year in April, suggesting the European Central Bank’s cheap loans are having little effect. While The Netherlands’ budget plan for 2013 doesn’t fully tackle its main economic challenges and coming national elections in September pose a risk to the implementation of the package.
The European Union’s executive arm said the budgetary measures underline the country’s commitment to EU budget rules and underscore its strong track record of budgetary discipline
The commission made the remarks in its review of the country’s 2012 reform and stability program, which also included an initial assessment of the budget deal for 2013 that was struck by the Dutch caretaker government. The previous administration collapsed last month following disagreement over proposed austerity measures.
We expect a range for today in EURUSD rate of 1.2390 to 1.2470 (Look like the pair heading further south toward 1.2380-1.2410)
STAND ASIDE
USDJPY: U.S. consumers in May were less confident as their views on labor conditions deteriorated, according to a report released Tuesday. The Conference Board, a private research group, said its index of consumer confidence dropped to 64.9 this month from a revised 68.7 in April, first reported as 69.2.
Within the Conference Board’s report, the present situation index, a gauge of consumers’ assessment of current economic conditions, dropped sharply to 45.9 from a revised 51.2 first reported as 51.4. The May present situation index was the lowest reading since January.
Consumer expectations for economic activity over the next six months fell to 77.6 from a revised 80.4, originally reported as 81.1.
We expect a range for today in USDJPY rate of 78.80 to 79.60
We BUY USDJPY at the current market price 79.00 ranges
Stop loss at 78.50
Target at 79.60 and 79.80
