AUDUSD: The Australian dollar was higher late in local trading amid expectations of further economic stimulus by the U.S. Federal Reserve, which is due to wrap up a two-day policy meeting later Wednesday.
New housing construction fell 12.6% in the first quarter of 2012 from the prior quarter and plunged 25% on year, the Australian Bureau of Statistics said Wednesday. Economists say housing construction is the worst performing sector of the economy, with conditions unlikely to improve this year, despite 125 basis points of interest rate cuts by the Reserve Bank of Australia since November, taking the official cash rate to 3.50%.
We expect a range for today in AUDUSD rate of 1.0130 to 1.0230
We RE-SELL AUDUSD at 1.0190
Stop loss at 1.0230
Target at 1.0130 and 1.0080
EURUSD: Spain could become the fourth euro-zone country to make a formal request for financial help from other members of the currency bloc during a two-day meeting of European finance ministers that begins Thursday.
The likely request, coming in the wake of the formation of a new Greek government and amid expectations that Cyprus will also ask for a bailout, is aimed at bolstering the capital of Spain’s banks, many of which are struggling from losses caused by a collapsing real-estate market.
We expect a range for today in EURUSD rate of 1.2630 to 1.2730
We RE-SELL for EURUSD at 1.2685
Stop loss at 1.2730
Target at 1.2610 TO 1.2560
USDJPY: Mr. Putin, who met with U.S. President Barack Obama Monday for intense two-way talks, has previously accused the U.S. of being a “parasite” on the world economy for all of the debt it has issued to creditors.
He proposes that the world switches to other reserve currencies from the dollar, and that could be on the agenda when Russia hosts the next G-20 summit in the historic city of St. Petersburg, where all the “obligations given by the Group of 20 countries will be reviewed
We expect a range for today in USDJPY rate of 79.00 to 79.80 (we closed the trade at 79.60, bought at 79.10)
We set a limit BUY order for USDJPY at 79.10
Stop loss at 78.60
Target at 79.60 and 79.80
