AUDUSD: The Australian dollar came back to earth Wednesday mostly because of a negative lead from U.S. stock markets, which also weighed on bourses in the Asia-Pacific region.
Local traders were also weighing an upbeat assessment of the banking sector by the Reserve bank of Australia. It said local lenders are in relatively good shape though economic conditions are widely divergent across the economy, with business failures and debt defaults now above their norms.
We expect a range for today in AUDUSD rate of 1.0350 to 1.0480 (Yesterday, we set our limit buy order at 1.0350, the pair drop low to 1.0357)
We entry LONG AUDUSD at 1.0390
Stop loss at 1.0320
Target at 1.0480 and 1.0520
EURUSD: Germany on Wednesday warned that calls for a higher firewall could destroy the credibility of the euro zone’s response to its debt crisis, responding to OECD demands this week for EUR1 trillion to prevent the debt crisis from spreading.
The Organization for Economic Cooperation and Development this week called for a euro zone firewall of EUR1 trillion. Seibert said that such calls could undermine confidence in existing firewalls.
We expect a range for today in EURUSD rate of 1.3280 to 1.3380 (Yesterday, we shorted the EURUSD at 1.3330, the pair drop low to 1.3275 before crawling back to 1.3320 ranges. We decide to close out the trade)
WE AVOID TRADING THE PAIR TODAY
USDJPY: Orders for long-lasting goods climbed for the fourth time in five months in February, an indication that the manufacturing sector continues as a key driver of the recovery. Manufacturers’ orders for durable goods–products meant to last at least three years–rose by 2.2% to a seasonally adjusted $211.77 billion
Manufacturing has been a bright spot in the economy, with output and employment generally expanding since the middle of last year.
Still, there have been some concerns that the pace of expansion is slowing. The Federal Reserve earlier this month reported that manufacturing output was up 0.3% in February following a 1.1% jump in January.
We expect a range for today in USDJPY rate of 82.60 and 83.60
WE AVOID TRADING THE PAIR TODAY
