AUDUSD: Reserve Bank of Australia sold A$589 million in the spot foreign exchange market in May. The central bank also bought A$639 million from the government during May. Taking the RBA’s spot foreign exchange market transactions and business it did with the government together, it bought a net A$50 million in May.
The data, included in the RBA monthly bulletin, reflect foreign exchange transactions against the Australian dollar undertaken by the central bank with authorized foreign exchange dealers in Australia or banks overseas.
We expect a range for today in AUDUSD rate of 0.9990 to 1.0110 (More head wind further south)
We set limit BUY order for AUDUSD at 1.0015
Stop loss at 0.9985
Target at 1.0115 and 1.0140
EURUSD: Soaring borrowing costs in Spain sent the euro sharply lower against the dollar and the pound, although the single currency managed to regain its composure and pared losses in later European trading Tuesday.
The euro traded at its lowest level in June against the pound, sinking below GBP0.8000 and as low as GBP0.7992 after Spain auctioned 3.077 billion euros ($3.850 billion) of three-month and six-month treasury bills. While the amount sold was in the upper end of the targeted range, the yields paid by Spain were the highest so far in 2012.
The average yield on the three-month T-bills rose to 2.362% from 0.846% at the previous auction May 22, while the average yield on the six-month T-bills increased to 3.237% from 1.737%.
We expect a range for today in EURUSD rate of 1.2430 to 1.2530
We set limit BUY order for EURUSD at 1.2430
Stop loss at 1.2370
Target at 1.2490 and 1.2530
USDJPY: The U.S. economic recovery may be gaining momentum, but the country faces stagnant wage growth, high comparative levels of poverty and income inequality and an educational system that provides few resources to those more likely to need help.
The OECD’s 2012 economic survey of the U.S. found that the U.S. economy has made some gains and is expected to grow moderately this year and next. A further deterioration of the European crisis or the potential for U.S. policy makers to allow for immediate sharp cuts in government spending could jeopardize the outlook
We expect a range for today in USDJPY rate of 79.00 to 80.00
We set limit BUY order for USDJPY at 78.90
Stop loss at 78.30
Target at 79.60 and 80.10
