AUDUSD: The Australian dollar surged to its highest level in more than six months Tuesday after the country’s central bank surprised markets by keeping its key benchmark cash rate on hold.
In an afternoon decision, the Reserve Bank of Australia kept rates at 4.25% despite a worsening global growth outlook and signs of Australian job losses, defying broad expectations that it would ease by 25 basis points. Thirsty investors piled into the commodity-linked currency, which pushed above US$1.0800 for the first time since Aug. 2 in the immediate aftermath of the decision.
We expect a range for today in AUDUSD rate of 1.0760 to 1.0825 (Yesterday, we short the pair at 1.0785, we continued to hold our trade.)
We Shorted AUDUSD at 1.0785 (continued to hold our trade)
Stop loss at 1.0840
Target at 1.0725 and 1.0685
EURUSD: Markets are still waiting for agreements on a Greek debt-restructuring deal with private-sector creditors and a bailout agreement for the debt-strapped country. A meeting among Greek Prime Minister Lucas Papademos and the three party bosses supporting his coalition government over the new loan deal was pushed back, for the second time, to Wednesday. Still, the euro and emerging European currencies strengthened.
The euro-zone countries are now much stronger because they have taken measures to tame the debt crisis, such as recapitalizing their banks and setting up the European Financial Stability Facility bailout fund,
We expect a range for today in EURUSD rate of 1.3080 to 1.3180 (We continued to hold our shorted position at 1.3220)
We Shorted EURUSD at 1.3220 (continue to hold our trade)
Stop loss at 1.3280
Target at 1.3170 and 1.3130
USDJPY: U.S. Federal Reserve Chairman Ben Bernanke warned lawmakers Tuesday that uncertainty over tax policy and federal spending set to change next year could slow the economic recovery.
Meanwhile, the central banker repeated his warning to lawmakers that the European sovereign debt crisis continues to slow global growth and could pose risks to the U.S. economy.
We expect a range for today in USDJPY rate of 76.20 to 76.80
We set limit BUY order for USDJPY at 76.30
Stop loss at 75.60
Target at 76.80 and 77.20
