AUDUSD: Another burst of worries over whether Greece will remain in the euro-zone weighed on the Australian dollar and helped bonds rally Wednesday as investors opted to buy so-called safe haven assets such as the U.S. dollar.
Those comments late in New York trade hit the Aussie dollar hard. At 0542 GMT, it was at US$0.9765, down from US$0.9924 late Tuesday, against the Japanese yen it was at Y77.719 versus Y78.85 and the 3-year June futures spot contract were up 12 basis points.
We expect a range for today in AUDUSD rate of 0.9680 to 0.9790
We set limit BUY order for AUDUSD at 0.9710
Stop loss at 0.9650
Target at 0.9770 and 0.9830
EURUSD: A period of calm in Asian trading hours broke abruptly as European trading got underway Thursday with the euro plunging to its weakest level against the dollar since July 2010 with dismal German activity data and Greek euro exit fears scraping market nerves.
The common currency sank below $1.2516 against the dollar, its lowest since July 6 2010 and also lost ground against the pound and the yen, sinking to its weakest since early February against the Japanese currency.
We expect a range for today in EURUSD rate of 1.2730 to 1.2830 (We mentioned yesterday that the pair like to have a little resistance at 1.2800 levels, the pair went down toward 1.2728 before crawling back)
We BUY EURUSD at the current market price 1.2530 ranges
Stop loss at 1.2510
Target at 1.2580 and 1.2660
USDJPY: Treasury Secretary Timothy Geithner said Thursday that political paralysis poses the biggest challenge to resolving U.S.’s long-term problems.
His comments come as the U.S. approaches a “fiscal cliff” of tax hikes and spending cuts at year-end that, if they take effect, could well trigger another recession. Longer term, spending on programs such as Medicare and Medicaid is growing at an unsustainable pace.
Despite the threats, Congress and the White House aren’t likely to reach any agreements on spending and taxes before November’s elections–and will probably struggle to strike a deal afterward.
We expect a range for today in USDJPY rate of 79.00 to 79.70
We BUY USDJPY at 79.30 ranges (continued to hold)
Stop loss at 78.80
Target at 79.70 and 80.10
