AUDUSD: The Australian dollar nudged higher late Thursday after falling sharply intraday in response to slightly quicker than expected Chinese inflation which hurt the currency as some dealers bet it restricted Beijing’s room to stoke demand there.
China’s consumer price index rose 4.1% in December from a year earlier, slightly slower than the 4.2% on-year rise in November and a touch above the 4.0% forecast by economists.
We expect a range for today in AUDUSD rate of 1.0100 to 1.0200 (We expect the pair to head further south toward 1.0160 ranges)
Set limit SHORT order for AUDUSD above 1.0300 ranges
Stop loss at 1.0360
Target at 1.0210 and 1.0160
EURUSD: There’s still plenty of room for house prices to fall in major economies across the globe, including critical nations such as Spain and Italy, despite prices already being in the doldrums
In many cases, such as for Spain, Italy, the U.K., Norway and Sweden, the ratio of house prices to both rent and income are above their historical averages. In a country such as Spain, the data underlines economists’ fears that banks may need to take major writedowns on the real estate assets.
We expect a range for today in EURUSD rate of 1.2680 to 1.2800 (Yesterday, we went long EURUSD above 1.2700 with target at 1.2760 and 1.2830, the pair reached both target. If you wish to continue holding, bring stop loss to 1.2780)
Short below 1.2780
Stop loss at 1.2840
Target at 1.2730 and 1.2640
USDJPY: New foreign central bank borrowing from the Federal Reserve totaled $35.348 billion in the week ending on Wednesday.
The new borrowing boosted the total number of dollars lent by the central bank to $91.459 billion, according to data released by the Federal Reserve Bank of New York. Some $43.712 billion in dollar loans matured in the week.
The dollar lending facility was set up by Fed to provide dollar lending to the European Central Bank, as well as the central banks of Canada, England, Switzerland and Japan. By lending dollars to other major central banks, the Fed hopes to ensure the continued liquidity of international financial markets. Borrowing has risen in recent weeks on increased financial market stress.
New borrowing by the ECB totaled $31.667 billion, for an outstanding level of $82.747 billion. New borrowings by the Bank of Japan were $3.281 billion, while Switzerland borrowed $400 million.
We expect a range for today in USDJPY rate of 76.60 to 77.20
We set limit BUY order for USDJPY at 76.60
Stop loss at 76.10
Target 77.30 and 77.60
