AUDUSD: The Australian dollar inched slightly higher in Asia trade Tuesday, helped in part by minutes from the latest meeting of Australia’s central bank board.
At its Dec. 6 policy meeting, when the Reserve Bank of Australia cut interest rates for the second straight month, the bank said that the relative strength of the local economy argued against such a cut. Further cuts in Australian interest rates in 2012 look set to be decided mostly by the crisis in Europe, with the bank seemingly positive on the outlook for Australia’s economy.
Further helping the Australian dollar was a subsiding in the initial sell-off in Asian currencies on Monday over North Korea’s succession plans following the death of that country’s leader.
We expect a range for today in AUDUSD rate of 1.0010 to 1.0100 (Yesterday, we bought the pair at 0.9920, the pair reach high at entry long above 0.9900, the pair reached high 1.0090, reached both of our target. Today we expect another pull back )
We Shorting the pair at 1.0080 ranges,
Stop loss at 1.0120
Target at 1.0030 Note: once the pair fall between 1.000, re-entry long with stop loss at 0.9970
EURUSD: With concerns intensifying about the impact of the euro zone’s sovereign debt crisis on global growth and commodities prices. The monetary authority now expects GDP to grow between 3.75% and 4.75% next year, compared to a prior forecast of 4.25%-5.25% growth, and lowered its outlook for 2011 to 6.2% on-year growth, from a prior range of 6.25% to 6.75%. In the first three quarters of the year, GDP grew 7% compared with January-September 2010.
We expect a range for today in EURUSD rate of 1.3000 to 1.3120 (We bought the pair at 1.3000, the pair reached high at 1.3120, hit both of our target)
We short the pair at 1.3085
Stop loss at 1.3125
Target at 1.3045. Note: Once the pair reach 1.3000 – re-entry long with stop loss at 1.2970
USDJPY: Fitch Ratings-New York-20 December 2011: Credit conditions will remain challenged for U.S. securities firms in 2012 as a result of earnings pressure emanating from global economic conditions and regulatory developments, according to Fitch Ratings. Credit ratings across Fitch’s U.S. securities firm portfolio incorporate weak fundamentals, and many ratings are below pre-crisis levels.
Fitch expects that trading could continue to be volatile in 2012 because of stress in Europe and continued market uncertainty. Investment banking activity will also be pressured as client firms may have limited opportunities to access the capital markets. Weak and uncertain markets may also dampen M&A activity and thus related M&A revenues.
We expect a range for today in USDJPY rate of 77.60 to 78.20
We set limit BUY order USDJPY at 77.65
Stop loss at 77.10
Target 78.15 and 78.65
