AUDUSD: The Australian dollar leapt higher Wednesday, boosted in part by more improving manufacturing data across the world.
Helping risk-sensitive currencies like the Australian dollar, a manufacturing purchasing managers index in the U.S. rose to 53.9 in December from 52.7 in November.
However, business, finance and property services were the strongest performing components which were offset by weak consumption, reflecting consumer worries over Europe’s debt crisis and soft local house prices.
We expect a range for today in AUDUSD rate of 1.0280 to 1.3380 (Yesterday we shorted the pair at 1.0380, the pair drop below 1.0300 before crawling back to 1.0340.
Set to re-short AUDUSD at 1.0410,
Stop loss at 1.0460
Target at 1.0330 and 1.0360
EURUSD: The euro initially rose to as high as $1.3073 against the dollar, almost matching the previous day’s highs, but fell back below $1.30 as currency traders digested service-sector data which reinforced the impression that the euro-zone economy contracted in the fourth quarter and after a successful but lackluster German 10-year government bond auction.
The single currency also extended a fall below Y100 against the yen as the market took stock of the big challenges still facing the euro zone, not least the massive funding requirements of some member states in the coming year and the region’s deteriorating economic fundamentals.
We expect a range for today in EURUSD rate of 1.2860 to 1.2980 (Yesterday, we set to short the pair at 1.3100, the pair reached 1.3072 then fall down to 1.2894)
We Set to enter LONG EURUSD at 1.2860 ranges
Stop loss at 1.2830
Target at 1.2970 and 1.3020
USDJPY: Wall Street’s biggest banks expect the Federal Reserve’s 0% interest rates to persist into at least 2014, and see better-than-even odds the Fed will provide additional stimulus to the economy in the near term.
The central bank has lowered short-term interest rates close to zero, and mortgage rates have been hovering around the lowest recorded levels. However, millions of homeowners have not been able to take advantage of low rates, due to restrictive mortgage-lending policies enacted in the wake of the housing bust. Many of those lenders are worried about being forced to buy back those loans if they go bad.
We expect a range for today in USDJPY rate of 76.60 to 77.50 (We continue to hold our long position at 76.90)
We set limit BUY order for USDJPY at 76.30
Stop loss at 75.70
Target 76.80 and 77.20
