AUDUSD: The Australian dollar was slightly lower late Friday amid ongoing concerns about Greece and China’s economic growth outlook. China’s largest banks are expected to fall short of lending goals for 2012 — the first failure to achieve the goal in at least seven years — as the economic slowdown hits lending
Heading into next week, markets will focus on a speech by Reserve Bank of Australia Governor Glenn Stevens on Monday. The topic of the speech has yet to be disclosed. Financial markets will also get a look at first-quarter business investment data with the report from the Australian Bureau of Statistics likely to confirm that the global crises has yet to put a dent in spending plans.
We expect a range for today in AUDUSD rate of 0.9760 to 0.9860 (Note: The Aussie might head south once it fall below 0.9890)
STAND ASIDE
EURUSD: Traders on the Chicago Mercantile Exchange bet heavily this week that the dollar will appreciate and the euro will fall, holding a net $31 billion in wagers against the euro and a net $35.3 billion in gambles on the dollar’s rise as of Tuesday, government data showed Friday.
For the dollar, investors’ bets were 25% higher than the previous week. Speculators’ net positions against the euro were 12% higher than last week. Traders held a net 195,361 euro contracts as of Tuesday.
We expect a range for today in EURUSD rate of 1.2500 TO 1.2600 (There might be a further fall due to weakness in Euro.)
STAND ASIDE
USDJPY: Investors slashed their net bets against the yen by 47%, to $2.8 billion, or 18,015 contracts. For the Swiss franc, traders continue to hold a net position worth $4.6 billion betting that the currency will depreciate. That position, representing 34,851 contracts, rose 30% this week.
We expect a range for today in USDJPY rate of 79.50 to 80.10
We BUY USDJPY at 79.30 ranges (sold)
Stop loss at 78.80
Target at 79.70 and 80.10 (We closed out the trade at 79.70
