AUDUSD: Minutes from the Reserve Bank of Australia’s October meeting is due and National Australia Bank will publish its business confidence survey. The RBA’s minutes will be parsed to see if the central bank came close to easing policy.
The relative resilience of the Australian economy does not necessarily rule out the possibility of a fine tuning 25 basis points rate cut at the November board meeting.
We expect a range for today in AUDUSD rate of 1.0280 to 1.0360 (Bullish bias above 1.0220)
Set Sell stop at 1.0290
Stop loss at 1.0330
Target at 1.0220, 1.0180 and 1.0130
EURUSD: Europe’s political leaders have signaled they are inching closer to a deal to stem the euro zone’s debt crisis, Australian Treasurer Wayne Swan said Monday after the conclusion of a meeting of the Group of 20 leading industrialized economies, held in France.
The euro, which has seen its fortunes see-saw as politicians and central bankers in the currency union debate a solution to the sovereign-debt problems wracking the monetary zone, saw bets against it fall to a net $12.6 billion, down 9% from the week before, or 73,795 contracts.
We expect a range for today in EURUSD rate of 1.3830 and 1.3940 (Bearish below 1.3830)
Set Sell Stop at 1.3850
Stop loss at 1.3920
Target at 1.3810, 1.3770 and 1.3720
USDJPY: Foreign exchange speculators placed slightly more bullish bets on the dollar’s outlook as of Oct. 11, wagering a net $13.7 billion that the dollar will rise, the Commodity Futures Trading Commission said Friday in its weekly announcement on the commitments of traders. That was 3% more than the previous week.
Traders were slightly less positive about the yen’s prospects and marginally more negative about the euro, the data showed, after a week of continued confusion over the euro zone’s fiscal crisis.
In the yen, traders held a net $5.7 billion in bets that the yen will strengthen, or 35,119 contracts, down 19% from the prior week.
We expect a range for today in USDJPY rate of 76.80 to 77.40 (The pair lost strength twice after hitting 74.45, we consider a good entry level between 76.60-70)
Limit Buy order for USDJPY at 76.65 ranges
Stop loss at 75.60
Target at 76.90, 77.20 and 77.60
