AUDUSD: The Australian dollar was lower late Thursday after more news emerged pointing to a slowdown in China’s economy, while markets were unimpressed with moves by the U.S. Federal Reserve to further stimulate economic growth.
The flash figure for the China HSBC Purchasing Managers Index for June fell to 48.1 compared with 48.4 in May, posting its eighth straight monthly decline.
Traders were also nervously awaiting the results of a bond auction in Spain during the early hours of European trading with further disappointment in Spain likely to trigger another wave of risk aversion.
We expect a range for today in AUDUSD rate of 0.9990 to 1.0080 (We expect the pair to drop further next week)
We RE-SELL AUDUSD at 1.0190
Stop loss at 1.0230 (If you wish to hold, bring stop loss to 1.0080)
Target at 1.0130 and 1.0080 (We closed out, hit both target)
EURUSD: Greece’s euro-zone partners struck a largely uncompromising tone Thursday, saying the country should first make progress on its long-delayed economic reforms before they would consider giving the country more leeway to meet the stringent terms of its rescue.
During a meeting of euro-zone finance ministers in Luxembourg, Dutch Finance Minister Jan Kees de Jager insisted Greece must push through with the “painful” overhauls, after which he hinted there might be some, albeit very limited, scope to change the conditions of its 173 billion euro rescue package.
We expect a range for today in EURUSD rate of 1.2490 to 1.2590
We RE-SELL for EURUSD at 1.2685
Stop loss at 1.2730 (bring stop loss to 1.2590 if you intend to hold)
Target at 1.2610 TO 1.2560 (We closed out, hit both target)
USDJPY: New borrowings at the Federal Reserve’s central bank dollar-lending facility totaled $2.447 billion in the week ended Wednesday, the Federal Reserve Bank of New York said Thursday.
Total borrowing stood at $24.215 billion in the latest week, up from $23.314 billion the week before.
The facility is open to major central banks to ensure the global financial system does not run short of dollar liqudity.
We expect a range for today in USDJPY rate of 79.60 to 80.40
STAND ASIDE
