AUDUSD: Many countries are battling double-digit unemployment figures and huge debt, but Australia managed through the global financial crisis.
The Australian government’s all-out effort to produce a budget surplus in 2012-13 attracted further criticism Tuesday, with leading Canberra think-tank Deloitte Access Economics saying the plan poses risks to the economy.
Swan is expected to unveil in the budget on May 8 plans to turn an estimated budget deficit of close to A$40 billion into a small surplus, producing the biggest one-year reversal in the budget ever seen.
We expect a range for today in AUDUSD rate of 1.0280 to 1.0420 (Yesterday, we set buy at 1.0280, we now bring our stop loss to entry level)
We BUY AUDUSD at 1.0280 (continued to hold)
Stop loss at 1.0280 (from 1.0220)
Target at 1.0350 and 1.0410
EURUSD: The European Investment Bank is inserting clauses in the loan deals it signs with Greek firms in order to renegotiate debts in case the country exits the euro zone and reverts to the drachma
The EIB proposed for the first time two new terms: One clause is the possible renegotiation of the agreement either if Greece left the euro zone or if the common currency area broke up. The second is placing the agreement under English law, in the event of a nonpayment.
Those currency-change clauses will not only affect Greece, but will be included in all contracts with countries under bailout programs–Greece, Portugal and Ireland–and will gradually be expanded to all euro-zone countries
We expect a range for today in EURUSD rate of 1.3150 to 1.3250 (Yesterday, we sold EURUSD at 1.3205 and closed out at 1.3125)
We SELL EURUSD at 1.3200 ranges (Sold at 1.3125)
Stop loss at 1.3270 from
Target at 1.3150 to 1.3110
USDJPY: There is a real danger U.S. authorities won’t take the necessary steps to fix the country’s debt and deficit problems between the elections and the end of this year.
China’s yuan was little changed against the U.S. dollar late Monday as investors weighed the greenback’s broad gains in Asian trading hours against the central bank’s move to guide the Chinese currency stronger.
Ahead of trading, the People’s Bank of China set the dollar/yuan central parity rate at 6.2970, lower than Friday’s 6.3042, following dollar weakness against the euro overseas after the Group of 20 leading economies agreed Friday to boost the IMF’s lending capacity by $430 billion, increasing the resources available to contain the festering European sovereign-debt crisis.
We expect a range for today in USDJPY rate of 80.50 to 81.80
We BUY USDJPY at 81.10 ranges
Stop loss at 80.70
Target at 81.30 and 81.70
