AUDUSD: The RBA slashed its cash rate by 50 basis points on Tuesday to 3.75%, taking the base rate to its lowest level since early 2010.
Most economists had expected the Reserve Bank of Australia, or RBA, to cut its overnight target by 25 basis points and said the move was an admission it had misread the strength of the economy.
We expect a range for today in AUDUSD rate of 1.0250 to 1.0350
We set limit BUY order for AUDUSD at 1.0250
Stop loss at 1.0190
Target at 1.0370 and 1.0420
EURUSD: The euro suffered heavy losses against other major currencies Wednesday after economic indicators underpinned fears of a deepening slump in euro-zone growth, contrasting unfavourably with the previous day’s robust U.S. manufacturing data.
Italy’s was among the standouts, sinking further below the 50 cutoff point that distinguishes growth from contraction, falling to 43.8 against the expected 46.7. Germany finished off the bad run with a below-consensus 46.2 compared with an expected 46.3.
We expect a range for today in EURUSD rate of 1.3080 TO 1.3180
We set limit BUY order for EURUSD at 1.3080
Stop loss at 1.3030
Target at 1.3140 and 1.3180
USDJPY: Emerging-market currencies never got a chance Wednesday, as weaker manufacturing data in some emerging-market countries and fewer-than-expected private-sector job additions in the U.S. in April had investors scuttling to dollar safety.
For most currencies, Wednesday’s activity was a reversal of the move on Tuesday. Markets once again were moving on daily news without any broader themes. The next couple of sessions will be dictated by decisions made by the European Central Bank Thursday on whether it will support Spain and other floundering European nations, and the U.S. jobs report due Friday.
We expect a range for today in USDJPY rate of 80.00 to 80.70
We BUY USDJPY at 80.30 (continued to hold)
Stop loss at 79.60
Target at 80.70-90
