AUDUSD: The number of housing-finance approvals in Australia fell a seasonally adjusted 1.2% in May from April. The value of investment housing loans in May fell 4.6% from April. The total value of housing finance commitments, which feeds directly into the Reserve Bank of Australia’s credit aggregates data, was A$20.19 billion, down 1.4% from April.
An index of consumer sentiment in Australia rose 3.7% in July from June in a sign aggressive interest rate cuts by the country’s central bank may finally be hitting their mark.
Still, analysts cautioned against reading too much into the result, with the nascent recovery in confidence likely to take some time to flow through to moribund retail and housing markets.
We expect a range for today in AUDUSD rate of 1.0200 to 1.0310 (Previously, we bought AUDUSD at 1.0190, target was 1.0280 and 1.0350)
We set limit SELL order for AUDUSD at 1.0310
Stop loss at 1.0360 (from 1.0130) (adjust stop loss to protect our trade)
Target at 1.0280 and 1.0350
EURUSD: More euro-denominated money market funds may put temporary restrictions on new investments and cut the fees they charge to keep returns positive, ratings agency Fitch Ratings said Wednesday. While these actions will help protect existing investors from potential negative yields, the high cost investors pay for liquidity in the current environment could increase the demand for products that have a longer investment horizon
However, Interbank lending rates in the euro zone, which are already at record lows, are expected to plummet further as the impact of the European Central Bank’s cut in its deposit rate to zero starts to filter down.
We expect a range for today in EURUSD rate of 1.2135 to 1.2350
We set limit BUY order for EURUSD at 1.2135
Stop loss at 1.2280
Target at 1.2260 and 1.2290
USDJPY: Federal Reserve officials are seriously considering a new round of economic stimulus, with some policy makers ready to act to help support the jobs market, while others are open to the idea if the economic recovery loses momentum, according to minutes of the Fed’s last meeting released Wednesday.
At the Fed’s last policy meeting on June 19-20, “a few members” thought “further policy stimulus likely would be necessary to promote satisfactory growth in employment and to ensure that the inflation rate” stays on target, according to the minutes, released after the customary three-week lag. Two Fed officials included a new securities-buying program in their economic forecasts, according to the minutes.
Meanwhile, “several others” thought that new action from the Fed “could be warranted” if the economic recovery were to lose momentum, risks to the forecast “became sufficiently pronounced,” or if inflation seemed likely to run “persistently below” the Fed’s 2% target.
We expect a range for today in USDJPY rate of 79.30 to 79.90
STAND ASIDE
