AUDUSD: The Australian dollar was higher in late trading Thursday as Asian shares won back some of the ground lost in heavy selling Wednesday. Still, markets remained jittery overall with any fresh news on Greece’s political crisis likely to dent risk appetite again.
The strength in the U.S. dollar is likely to cap near-term upside in the Australian dollar. However, Australian dollar crosses are likely to begin to move higher over the next two weeks
he size of the fall in the Australian dollar over recent weeks, the likelihood the RBA will keep rates steady in June, a lack of meaningful China data in coming weeks, Greek elections still a month away and the potential for interest cuts in other major economies, should support the Australian dollar on crosses
We expect a range for today in AUDUSD rate of 0.9860 to 0.9940 (The Aussie might have a minor support at 0.9860 region)
STAND ASIDE
EURUSD: Greece is likely to leave the euro zone by the new year after Europe crafts a plan for an orderly exit. Leaders from the Group of Eight leading nations are expected to “contemplate” scenarios such as Greece’s exit from the common currency union if its leaders refuse to accept bailout conditions.
The leaders of the U.K., Germany, France, Italy and senior European Union officials agreed Thursday that both budget consolidation and growth are necessary to tackle the euro-zone crisis
We expect a range for today in EURUSD rate of 1.2610 to 1.2730 (Further deteriorate expect for the EUR. It likely to head further toward 1.2600 and possible 1.2500 if condition worsen)
STAND ASIDE
USDJPY: The Federal Reserve’s latest weekly money supply report Thursday shows seasonally adjusted M1 fell by $34 billion to $2.218 trillion, while M2 fell $1.7 billion to $9.869 trillion.
Elsewhere, Japan’s economy grew for a third straight quarter, expanding at an annualized 4.1% in the first quarter, compared with 3.5%.
We expect a range for today in USDJPY rate of 78.50 to 79.50
STAND ASIDE
