AUDUSD: A better tone among investors helped the Australian dollar push higher Thursday in a quiet session lacking fresh news flow.
At 0620 GMT, the Australian dollar was at US$1.0378 compared with US$1.0265 late Tuesday–Sydney markets were closed for a public holiday Wednesday. It was also trading at Y84.23 from Tuesday’s Y83.12.
The currency was little moved by a firm signal from U.S. Federal Reserve Chairman Ben Bernanke that all options remain on the table, including further policy easing. The bigger focus for the Aussie remains squarely on next week’s meeting of the Reserve Bank of Australia board.
We expect a range for today in AUDUSD rate of 1.0310 to 1.0420 (Due to rate cut speculation, the AUSSIE will head further south)
We SHORT AUDUSD at 1.0370
Stop loss at 1.410)
Target at 1.0320 and 1.0280
EURUSD: The European Commission said it was “encouraged” Thursday by news that Dutch political parties were nearing an agreement on a budget.
The Dutch government had to tender its resignation after it failed to secure the necessary support for a budget seeking to cut more than EUR10 billion in order to reach an EU deficit target of 3% gross domestic product by 2013.
We expect a range for today in EURUSD rate of 1.3150 to 1.3250 (We continue to hold our short position)
We SELL EURUSD at 1.3220 (continued to hold)
Stop loss at 1.3260
Target at 1.3150 to 1.3110
USDJPY: Emerging-market currencies were mixed and sovereign debt was steady Thursday, easing back from the previous session’s rally.
Profit-taking from Wednesday’s rally dominated early trading, and disappointing U.S. jobless-claims data further dented emerging-market currencies. While better-than-expected housing data lifted sentiment and helped lead to some dollar weakness, most emerging-market currencies settled into their respective ranges, with investors looking ahead to the first reading on first-quarter U.S. gross domestic product due Friday.
We expect a range for today in USDJPY rate of 80.80 to 81.50
We BUY USDJPY at 81.10 ranges (continued to hold)
Stop loss at 80.70
Target at 81.70-90
