AUDUSD: The Australian dollar was lower Wednesday as regional markets continued to worry about a slowdown in the Chinese economy.
resources exports will grow by 4.6% in the next fiscal year starting July 1 to A$208.32 billion (US$217 billion), according to the Bureau of Resources and Energy Economics, in a quarterly report. In the current fiscal year ending June 30, the value of those exports is expected to rise 11% to A$199.17 billion.
Looking forward, the market will focus on the release of China’s HSBC flash Purchasing Managers Index on Thursday. The index has remained below 50 for four consecutive months, indicating manufacturing activity is contracting.
We expect a range for today in AUDUSD rate of 1.0380 to 1.0500 (Yesterday, we bought AUDUSD at limit price 1.0425, we now bring our stop loss to entry level to protect our trade.
We bought AUDUSD at 1.0425 (continued to hold)
Stop loss at 1.0425 (from 1.0375)
Target at 1.0475 and 1.0520
EURUSD: The European Union Wednesday proposed to allow government agencies to discriminate against firms based in countries where European companies are restricted from winning government contracts, a move aimed at pressuring China, the U.S. and others to open their government contracting markets to foreign competition.
European companies have long complained they face a raft of barriers to winning government contracts overseas. The EU claims its government procurement market is the most open in the world, with EUR352 billion annually in business opportunities open to foreign firms.
We expect a range for today in EURUSD rate of 1.3140 to 1.3280 (Yesterday, we shorted the pair at 1.3280, the pair hit both target at 1.3230 and 1.3190)
WE AVOID TRADING THE PAIR TODAY!
USDJPY: U.S. regulators need to “carefully consider” complaints about new rules limiting banks’ ability to bet with their own money, a top Federal Reserve official is set to tell lawmakers Thursday, as international and domestic pressure grows against the so-called Volcker Rule.
Concerns about the Volcker Rule, which is intended to prevent risky proprietary trading by banks, have been on the rise as regulators struggle to finalize the new rules ahead of a July 21 deadline for restrictions to be in place.
We expect a range for today in USDJPY rate of 82.80 to 83.60 (There is a minor support at 83.00 level, fail to support at the region will heading toward 82.00 areas.)
WE AVOID TRADING THE PAIR TODAY
