AUDUSD: The total number of houses and apartments that started construction in Australia in the second quarter of 2011 fell 4.7% from the first quarter to a seasonally adjusted 37,820.
Seasonally adjusted dwelling units commenced
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Period Total Number % Change on quarter
2Q 11 37,820 -4.7%
1Q 11 39,685 +3.3%
2Q 10 46,477 +3.5%
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The Australian Bureau of Statistics also reported Wednesday that the number of private-sector houses started in the second quarter fell 2.1% from the previous quarter to 22,709.
The trend estimate for the total number of housing starts, which further smoothes the seasonally adjusted numbers, fell 0.9% from the first quarter to 38,289.
We expect a range for today in AUDUSD rate of 1.0170 to 1.0350 (We set to entry the trade between 1.0170-1.0200, stop loss at 1.0120, target between 1.0315, 1.0350. We expecting the pair will like to hit 1.0315-50 during European session)
EURUSD: European bank shares have been hammered over fears about the debt they hold from Greece, Italy and other weak euro-zone countries. Concern over European banking health has been exacerbated by rating downgrades of French banks and calls by the International Monetary Fund for mandatory recapitalization of euro-zone banks.
The IIF represents around 440 of the world’s largest private banks, with board members from institutions such as Deutsche Bank AG, Commerzbank AG and UBS AG.
The IIF said the officials at the IMF had revised their initial estimates of more than EUR200 billion in sovereign debt exposure in the euro zone. That figure, leaked to the press around the time that IMF chief Christine Lagarde called for mandatory recapitalization of euro-zone banks, was widely reported as the total amount of recapitalization the IMF believed was necessary. The IMF said the figure was misunderstood, and that officials were negotiating how to present their review of European banks in the upcoming Global Financial Stability Report.
We expect a range for today in EURUSD rate of 1.3630 to 1.3820 (We expecting the pair to head south, we set limit Short order at 1.3820, stop loss at 1.3860 and target at 1.3760, 1.3720 toward 1.3550 and 1.3510)
USDJPY: currency options were down in Tokyo Wednesday as the underlying exchange rate remained in a narrow band, tempering demand for hedges against wider swings.
The dollar traded in a relatively tight Y76.86-Y77.06 band, ahead of the release of U.S. advance monthly sales for retail and food services for August at 1230 GMT.
Meanwhile, benchmark one-month euro/yen volatilities were at 17.05%/18.05% from 18.65%/19.65% Tuesday, weighed by calmer trade in the spot market.
But any further negative news concerning the sovereign debt problems in Europe could fuel demand for bets on greater volatility in the common currency, pushing euro options up later
We expect a range for today in USDJPY rate of 76.60 to 77.20 (Yesterday, we suggest to set a buy order between 76.40-60, the pair drop low at 76.58, those who already entry the trade, set stop loss at 75.80, target at 77.20-60 ranges. The market price currently at 76.70 ranges, it is still a good entry point.)
