AUDUSD: Markets Continued worries about Europe’s ongoing debt crisis after a meeting of the region’s finance ministers seemed to offer no new solutions hurt the high yielding Australian dollar Monday.
Analysts expect the volatility to continue in a busy week for risk events with the Federal Reserve’s policy committee due to meet and the meeting of the International Monetary Fund and World Bank in Washington.
Elsewhere, Australian merchandise imports rose 4% to A$20.52 billion in August from A$19.72 billion in July in seasonally adjusted terms, the Australian Bureau of Statistics said Monday. The bureau said machinery and transport equipment accounted for the largest proportion of imports in original terms and were valued at A$7.4 billion.
We expect a range for today in AUDUSD rate of 1.0090 to 1.0250 (Yesterday, we set an entry at 1.0185, with stop loss at 1.0120, target at 1.0235, 1.0280 and 1.0360. We continued to hold the trade.)
EURUSD: The European debt crisis is threatening the withdrawal of investment in emerging markets, the head of the World Bank warned Monday.
Emerging economies such as China and Brazil had risked overheating their economies before the European debt crisis entered a dangerous new phase in recent weeks. Many governments and their central banks started hitting the brakes to slow down their economies.
If the European debt crisis worsens and spills over into the U.S. and global markets, the World Bank expects growth in developing countries to fall, the value of their assets to drop and the number of loan problems to increase.
We expect a range for today in EURUSD rate of 1.3550 to 1.3680 (BE VERY CAUTRION: Yesterday, we set limit buy order at 1.3480, it is now cancel. We reset our limit buy order at 1.3550, stop loss at 1.3470, target at 1.3580, 1.3620, 1.3680.)
USDJPY: Washington risks harming U.S. growth and investment without a long-term solution to its debt problems. U.S. markets tumbled a few months ago as politicians fought over the budget, only barely reaching a temporary compromise at the last moment.
Geithner also said he will continue to encourage European leaders to contain their growing sovereign-debt crisis. Finance ministers from around the world will meet in Washington later this week as part of the International Monetary Fund and Group of 20 nations conferences. The euro-zone crisis is expected to be the center of attention. The longer Europe is unable to fix its debt problems, the risk of another global recession and financial meltdown escalates.
We expect a range for today in USDJPY rate of 76.30 to 76.90 (Yesterday, we successfully close the trade above 76.90 ranges. We set limit BUY order for the pair at 76.30, stop loss at 75.70 and target at 76.90, 77.20.)
