AUDUSD: The Australian dollar was flat late Thursday and shook off a major political row as Prime Minister Julia Gillard cleared the way for a leadership ballot on Monday which former Foreign Minister Kevin Rudd is expected to contest.
The currency initially weakened on the news but quickly rebounded as markets ignored the political drama.
We expect a range for today in AUDUSD rate of 1.0700 to 1.0800
We set limit SELL order for AUDUSD above 1.0800
Stop loss at 1.0850
Target remain 1.0730 and 1.0680
EURUSD: The euro rose in European hours Thursday to its highest level against the dollar since early December as strong German business confidence data helped to buoy investor confidence in the wobbly global economy, even as crude oil prices hit new nine-month highs.
The euro traded as high as $1.3343 against the dollar, its strongest level since Dec. 12, after the Ifo Institute’s closely-watched business survey showed a bigger-than-expected improvement in February, suggesting Europe’s largest economy will soon overcome a recent slowdown in activity. The euro rose against other currencies too.
We expect a range for today in EURUSD rate of 1.3320 to 1.3420
WE prefer to stay out of the pair today!
USDJPY: New borrowing at the Federal Reserve’s central bank dollar liquidity facility totaled $3.702 billion in the week ended on Wednesday.
Total borrowing at the facility stood at $107.959 billion, according to data released by the Federal Reserve Bank of New York on Thursday. Total borrowing last week stood at $109.088 billion. Some $4.831 billion in loans matured in the latest week.
In the latest week, the European Central Bank borrowed $3.702 billion in new funding, for a total of $89.262 billion. The facility is also open to the Bank of Canada, Bank of England, Bank of Japan and the Swiss Central Bank.
We expect a range for today in USDJPY rate of 79.60 TO 80.30
We are shorting USDJPY at the current market price 79.97
Stop loss at 80.50
Target at 79.60 and 79.30
