AUDUSD: The Australian dollar was little changed in Asian trading Monday with a U.S. holiday thinning volumes, but the outlook for the currency remains upbeat.
News Saturday that China’s central bank will cut banks’ reserve requirement ratio by 0.5 percentage point prompted a strong start to trade, with the Australian dollar moving above US$1.0800 at one point. The China central bank’s move followed Friday’s cash injection via reverse repo agreements to ease a liquidity squeeze in the country, Australia’s largest trading partner.
We expect a range for today in AUDUSD rate of 1.0710 to 1.0780 (Yesterday, we place a shorted trade for AUDUSD above 1.0800, the pair reached high at 1.0818. Currently sit on 1.0750 ranges. If you intend to hold, trail stop loss to 1.0780)
We shorted AUDUSD above 1.0800 (continued to hold)
Stop loss at 1.0780 (from 1.0860)
Target remain the same at 1.0730 and 1.0680
EURUSD: As euro-zone finance ministers met in Brussels on a EUR130 billion ($172 billion) loan deal for the heavily indebted country, Greece’s finance ministry officials and representatives from its international creditors met with Charles Dallara, managing director of the Institute of International Finance
Meanwhile, optimism that a deal will be done to safeguard Greece’s future remained high. European finance ministers will meet later today to decide whether to approve a US$170.9 billion bailout package designed to bring Greece’s debts down to 120% of GDP by 2020.
We expect a range for today in EURUSD rate of 1.3180 to 1.3260
We shorted EURUSD 1.3240 ranges
Stop loss at 1.3265
Target at 1.3180 and 1.3130
USDJPY: Dollar/yen options rose in Asia on Monday as the greenback stayed strong above the Y79.00 mark, at one point closing in on the psychologically-key Y80.00 mark.
At 0200 GMT, benchmark one-month at-the-money dollar/yen options were at 8.97%/9.27% from 8.60%/9.00% late Friday in New York. The dollar/yen spot rate is at Y79.45 after earlier climbing as high as Y79.89, its highest since Aug. 4.
We expect a range for today in USDJPY rate of 79.20 TO 80.00
We shorted USDJPY at 79.60 ranges
Stop loss at 79.85
Target at 79.20 and 78.80
