AUDUSD: The Australian dollar was stronger late Thursday supported by a batch of solid data which helped lift the gloom that has hung over the economy in recent weeks.
News on the Chinese economy was also more upbeat, giving the currency additional zest. China’s official Purchasing Managers Index rose slightly in August, posting its first gain since March.
China’s PMI rose to 50.9 in August compared with 50.7 in July, according to the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics.
We expect a range for today in AUDUSD rate of 1.0660 to 1.0760 (We set to short the pair at 1.0760, stop loss at 1.0820, target at 1.0710, 1.0680 and 1.0630)
EURUSD: The euro came under significant pressure in European trading hours Thursday after a disastrous set of euro-zone manufacturing surveys and continued political wrangling over Greece’s debt reignited concerns about the 17-country bloc, sending investors rushing to the safety of the Swiss franc.
Since European trading got underway the euro has been under pressure, initially weakening on a International Monetary Fund report that European banks’ balance sheets have suffered serious damage from their holdings of troubled euro-zone sovereign debt.
In addition, sources said Greece’s budget deficit could exceed 8.5% of gross domestic product this year, well above the official forecast of 7.6%. What’s more, euro-zone finance ministers are still struggling to reach an agreement on the details of possible securities for bailout loans for Greece
We expect a range for today in EURUSD rate of 1.4140 to 1.4340 (We set Limit BUY order at 1.4140, stop loss at 1.4080, target at 1.4180, 1.4230 and 1.4280. If you intend to entry at the current market 1.4260 ranges, stop loss at 1.4230, target at 1.4310, 1.4350 and 1.4380. Once the pair break above 1.4310, trail stop loss to 1.4260.)
USDJPY: The currency swap lines exist to ensure the Bank of Canada, Bank of England, Bank of Japan, European Central Bank and the Swiss National Bank have access to dollar liquidity. The program was restarted as worries rose about European financial markets amid government debt problems.
During the worst part of the financial crisis in 2008 and later, borrowings in the program totalled hundreds of billions, as financial institutions around the world scrambled for dollars.
Since being reintroduced in May 2010, the facility has been little used, although last week financial markets were surprised when the ECB unexpectedly borrowed $500 million in the week ended on Aug. 24. A week before, the Swiss National Bank, which has seen strong inflows into its currency amid market volatility and anxiety, had drawn $200 million.
We expect a range for today in USDJPY rate of 76.40 to 77.10 (We set limit to buy at 76.40, stop loss at 75.80, target at 76.80 to 77.10.)