AUDUSD: Australian manufacturing activity was broadly unchanged in November, with the industry still being pressured by low levels of building activity, competition from cheap imports, and skilled labor shortages.
Manufacturing, which employs around 1 million people in Australia, has struggled over recent years as the Australian dollar has soared above parity with the U.S. dollar and showed few signs of turning around.
Currency forecasters remain confident that the strong economy, relatively high interest rates, a mining investment boom and solid central bank demand for the Australian dollar will ensure it remains elevated.
We expect a range for today in AUDUSD rate of 1.0130 to 1.0330 (Yesterday, we shorted at 1.0060, the pair drop low 0.9939, hit both target 1.0010 and 0.9950 then reversal)
We re-short the pair at 1.0250 ranges
Stop loss at 1.0320
Target at 1.0180, 1.0130
EURUSD: European officials should look to the International Monetary Fund for financial support. In recent days, discussions on how to shore up ailing euro-zone countries have revolved around the possibility of the IMF committing its resources to stamping out contagion risks. Another idea floated by euro-zone officials is finding a way for the European Central Bank to lend money to the IMF.
Central banks from developed nations Wednesday moved in concert to ease funding and liquidity strains in the global financial system as the euro zone’s debt and banking crisis continues to roil markets.
We expect a range for today in EURUSD rate of 1.3400 to 1.3520 (We avoid trading the pair)
USDJPY: The U.S. Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank agreed to lower the cost of emergency U.S. dollar loans by one half of a percentage point
The coordinated global action makes dollar funding cheaper for European banks that need to make and receive payments in dollars, but it doesn’t address the fundamental problems related to European government debt which now plague the financial system. Economists said the move was largely a symbolic gesture aimed at calming market fears.
We expect a range for today in USDJPY rate of 77.60 to 78.20 (We bought the pair at 77.45)
Bought USDJPY at 77.45 (continued to hold)
Stop loss at 76.70
Target at 77.80, 78.20
