AUSDUSD: Fresh worries that the euro zone’s debt crisis is set for a new leg due to Spain’s fragile fiscal position hurt the Australian dollar Monday amid a dearth of domestic news.
The focus is set to remain on offshore news in the immediate term, as investors look to upcoming U.S. economic data and corporate earnings for cues. Traders will also get some local direction on Tuesday when the Reserve Bank of Australia releases the minutes of its April policy meeting.
We expect a range for today in AUDUSD rate of 1.0270 to 1.0420 (Yesterday we entry at 1.0322, the pair reached high at 1.0377)
We BUY AUDUSD at 1.0320 (continued to hold)
Stop loss at 1.0290 (from 1.0250)
Target at 1.0450 and 1.0480
EURUSD: The euro recovered some poise in European trading Monday but remained vulnerable after hitting multi-month lows against the dollar and sterling as Spanish fiscal worries pounded bond and equity markets.
Yields on 10-year Spanish government bonds rose above 6% for the first time since December and Spanish equities briefly hit a new three-year low, while the cost of insuring against a Spanish default rose to a record high.
The euro at one point flopped to its weakest level since February against the dollar, falling to as low as $1.2994 in early trade from $1.3077 late Friday in New York, before steadying above $1.30
We expect a range for today in EURUSD rate of 1.3100 to 1.3200 (Yesterday we bought at 1.3020 the pair reach our first target at 1.3130, highest was 1.3143)
We BUY EURUSD at 1.3020 (closed out)
Stop loss at 1.3080 from 1.2950 (if you wish to hold, bring stop loss to)
Target at 1.3130 to 1.3180
USDJPY: The Federal Reserve should hold monetary policy steady when it meets next week and continue to evaluate its options for the future
Most economists expect the gathering to be a status quo affair. The Fed isn’t expected to announce any new policies, and most believe it will carry forward with its program to sell short-dated securities to buy longer-dated bonds, as well as maintain its conditional commitment to keep rates very low through much of 2014. Economists hold to that view in the face of a string of recent Fed speeches that showed a wide divergence of opinion about what the Fed should do in the future.
We expect a range for today in USDJPY rate of 80.50 to 81.80
We BUY USDJPY at 80.80 ranges (continued to hold)
Stop loss at 80.30
Target at 81.30 and 81.70
