…citing low government debt levels and a flexible policy framework.
AUDUSD: The Australian dollar has risen around 70% since late 2008, bolstered by high demand for its key commodities of coal, iron and natural gas in Asia. Comparatively high interest rate and a trend among global central banks to include the Australian dollar in their foreign currency reserve baskets have also given it a lift.
The survey also shows firms expect the Australian dollar to remain “well north” of parity with the U.S. dollar in 2012, with importers the most optimistic.
About 52% of importers reported the high Australian dollar is encouraging them to increase investment spending, while 43% of exporters report the high Australian dollar is encouraging them to decrease investment spending.
We expect a range for today in AUDUSD rate of 0.9930 to 1.0060 (Yesterday it hit our stop loss where we shorted at 0.9960 and stop loss at 1.0020)
Set limit Short order for AUDUSD at 1.0080
Stop loss at 1.0140
Target at 1.0010, and 0.9950
EURUSD: Euro-zone finance ministers agreed Tuesday to disburse the sixth tranche of Greece’s rescue package and the next tranche of Ireland’s loans.
Finance ministers approved a EUR8 billion aid payment to Greece, which has been delayed for months amid political disputes between euro-area governments and within the Greek government.
The Greek disbursement will take place after the International Monetary Fund board takes its decision on the disbursement in the beginning of December. However, due to the weaker growth outlook than originally forecast, there is a need to take further fiscal consolidation measures to meet the 2013 goal.
We expect a range for today in EURUSD rate of 1.3230 to 1.3390 (We shorted at 1.3390, the pair drop low at 1.3290)
RE-Set Limit SHORT order for EURUSD at 1.3390
Stop loss at 1.3430
Target at 1.3330, 1.3260
USDJPY: The U.S. and European Union will consider the possibility of a free-trade agreement as part of high-level talks on how to support jobs and growth on both sides of the Atlantic. The talks follow a recent call by leading businesses on both sides of the Atlantic to eliminate tariffs and other impediments to trade and investment.
The move to boost growth comes as the ongoing European debt crisis threatens to derail recoveries in the EU and U.S., with exports from the region to the U.S. contracting 2.1% in the third quarter.
We expect a range for today in USDJPY rate of 77.60 to 78.20 (We decide to close out the position)
We set limit BUY order for USDJPY at 77.45
Stop loss at 76.70
Target at 77.80, 78.20
