AUDUSD: Reserve Bank of Australia sold A$1.28 billion in the spot foreign exchange market in June, figures issued by the central bank Thursday show.
The data, included in the RBA monthly bulletin, reflect foreign exchange transactions against the Australian dollar undertaken by the Reserve Bank with authorized foreign exchange dealers in Australia or banks overseas.
The central bank also bought A$1.34 billion from the government during June.
Taking the Reserve Bank’s spot foreign exchange market transactions and business it did with the government together, the central bank bought a net A$58 million.
We expect a range for today in AUDUSD rate of 1.0750 to 1.0880 (we are shorting the pair at the current market price 1.0840 ranges, stop loss at 1.0920, target at 1.0780 down to 1.0720. Yesterday we place a shorted trade at 1.0770 and close out at 1.0720, booked 50 pips profit)
EURUSD: The head of the International Monetary Fund Thursday welcomed a European Union financing deal meant to stem a European sovereign-debt crisis, indicating it was enough for the fund to approve an expanded program for Greece.
The IMF welcomes the important steps taken today by the leaders of the euro zone and the EU institutions. These measures provide significant support to growth and financial stability in Greece and in the euro zone
There’s been a growing urgency among world leaders that Europe must overcome its political differences and solve its debt crisis before it spirals into another global financial meltdown. Fears that the debt crisis may engulf Europe’s fourth largest economy, Italy, has accelerating concerns that months of bickering between European officials is on the brink of pushing the euro zone plight into a far more damaging stage.
Both European leaders and the IMF say the compromise reached Thursday to finance Athen’s funding gap and strengthen the EU’s emergency bailout program and euro zone-wide economic governance should allay those concerns.
We expect a range for today in EURUSD rate of 1.4360 to 1.4460 (Two days ago, we mentioned that the pair forming a Elliot wave which might bring the pair to the north. Yesterday we suggest that the pair could fall back to 1.4150 when the pair was 1.4280. The uptrend might continue due to the fund approve to save Greece. Although we set to short at 1.4540, stop loss at 1.4600, target at 1.4420 to 1.4360 and 1.4220)
USDJPY: The GOP “Cut, Cap and Balance” plan would seek to push for deep immediate spending cuts, followed by a cap on federal spending in future years. It would also state that any increase in the debt ceiling would be contingent on congressional approval of a constitutional amendment requiring the federal government to balance the budget.
Democrats have fiercely opposed the plan, arguing that it is too drastic an approach to deficit reduction. Republicans have countered that it is a balanced way to rein in federal spending.
By defeating the proposal and moving on, Democrats hope to expedite the process of reaching an acceptable compromise to increase the $14.29 trillion debt ceiling, something that must be completed before Aug. 2.
We expect a range for today in USDJPY rate of 78.20 to 79.00 (Yesterday we place a Long trade at 78.50, with stop loss at 77.80, and target upside 79.10 toward 80.00, we continue to hold our trade)
