and the euro tumbled, as investors piled into safe-haven assets amid rising fears over Europe’s sovereign debt crisis.
AUDUSD: A weak tone for risk sentiment across Asia Monday as equities racked up fresh losses sent the Australia dollar lower as dealers in the region responded to Friday’s tepid U.S. jobs numbers.
The Reserve Bank of Australia is widely expected to hold rates steady, likely citing a shaky global outlook, though economists expect the bank will continue to point to massive capital spending planned in the domestic economy.
Second quarter growth figures for Australia are due Wednesday, which are expected to show a quick rebound from the flood-affected first quarter contraction, while on Thursday local jobs numbers are due.
We expect a range for today in AUDUSD rate of 1.0500 to 1.0600 (Yesterday, we set limit buy order for the pair at 1.0530; we expect the pair to recover after several days self off. Those who wish to entry the trade at the current market price 1.0518, stop loss at 1.0470, target at 1.0580, 1.0630 and 1.0670.)
EURUSD: European stocks plunged Monday and the euro tumbled, as investors piled into safe-haven assets amid rising fears over Europe’s sovereign debt crisis and economic growth on both sides of the Atlantic.
Europe’s beleaguered banking sector was battered over concerns about growth as well as lawsuits filed against 17 lenders Friday by the top U.S. federal housing regulator, saying they sold $196 billion of risky home loans over four years to Fannie Mae and Freddie Mac without adequately disclosing the risks.
Further evidence of the weakness of the European economy came in weak purchasing managers index data from France, Germany and the euro zone as whole. That focus on Italy comes after negotiations between Greece and international lenders stalled on Friday amid disagreement over the nation’s progress on reducing its budget deficit. Greece’s top central banker called on the government to speed up efforts to close the budget gap amid growing concerns elsewhere in Europe that Athens can’t pull itself out of its debt spiral.
We expect a range for today in EURUSD rate of 1.4020 to 1.4130 (We expect the pair to have a minor support at 1.4020, break the support will likely to head further toward 1.3850. Those who wish to entry the trade at 1.4020, stop loss at 1.3960, target at 1.4080, 1.4130 and toward 1.4220.)
USDJPY: Traders have begun preparing for some punishment for the dollar after the U.S. Labor Department reported the economy added no jobs in August, feeding into expectations that the Federal Reserve will be compelled to act to boost growth. The dollar slipped against the Swiss franc, another popular haven, after the data.
They have recent history as a guide: The dollar has plunged nearly 20% against the euro over the past year and a half, a period that includes the runup to and aftermath of the last round of quantitative easing, the Fed’s $600 billion bond-buying program known as QE2. But QE3–which isn’t a sure thing–may not pack the same dollar-slamming punch.
We expect a range for today in USDJPY rate of 76.30 to 77.30 (We set to go long at 76.30, stop loss at 75.70 and target at 76.60 and 76.90, while setting short at 77.30, stop loss at 78.00 and target at 76.90 and 76.60.)
