AUDUSD: The Australian dollar was higher late Wednesday spurred by news of strong economic growth in the third quarter and rising hopes that some progress will be made in coming days toward resolving Europe’s debt crisis.
Surging mining investment boosted gross domestic product 1.0% in the third quarter from the second and the economy grew 2.5% from a year earlier, the Australian Bureau of Statistics said Wednesday. The result beat expectations of 0.8% growth in the quarter.
The Aussie jumped by around one quarter of a U.S. cent on the data which was strong enough to spook investors who continue to expect aggressive interest rate cuts in 2012.
We expect a range for today in AUDUSD rate of 1.0230 to 1.0330
Short AUDUSD at 1.0330
Stop loss at 1.0380
Target at 1.0260, 1.0220
EURUSD: The euro sank against the dollar during European trading Wednesday as Germany dashed hopes of a boost to the euro zone’s rescue firepower and sought to manage market expectations ahead of Friday’s crucial summit.
European leaders are meeting later this week in an eleventh-hour attempt to forge a debt-crisis strategy. Europe is on the brink of financial calamity as bank funding dries up, core EU sovereign debt is threatened with rating downgrades and the euro zone’s largest economies flirt with an inability to pay massive upcoming bills.
Officials are considering pooling funding from European central banks through the IMF as one of several options being considered to douse the debt fires. In addition, euro-zone leaders have courted financing from emerging markets, also likely be channeled through the IMF.
We expect a range for today in EURUSD rate of 1.3350 to 1.3470
Long EURUSD above 1.3400
Stop loss at 1.3320
Target at 1.3460, 1.3510
USDJPY: Yen options were almost unchanged on Wednesday in Asia as the underlying exchange rate remained in a narrow range and investors don’t expect it to become wider anytime soon.
The greenback has been trading around Y78 in recent days, and investors believe the currency market’s focus is on European debt problems therefore trading of the U.S. currency against the Japanese yen will remain subdued for the time being.
We expect a range for today in USDJPY rate of 77.30 to 77.90
We set limit BUY order for USDJPY at 77.30
Stop loss at 76.70
Target at 77.80, 78.20
