AUDUSD: The Australian dollar was trading higher late Friday but gave up some of its gains after Greece announced results of its distressed-debt exchange with private creditors.
Slowing China inflation helped support the Aussie as dealers bet on further policy easing by Beijing, which helped cushion the blow of an unexpected trade deficit in January for Australia.
The Australian dollar slumped on news that Australia posted a seasonally adjusted trade deficit of A$673 million (US$716 million) in January, compared with a surplus of A$1.33 billion in December. That figure was lower than analyst expectations for a surplus of A$1.5 billion. It was the first deficit since February 2011.
We expect a range for today in AUDUSD rate of 1.0530 to 1.0630 (
We BUYING AUDUSD at 1.0570
Stop loss at 1.0520
Target at 1.0630 and 1.0690
EURUSD: Greece has triggered collective action clauses to force holdouts to accept a bond swap aimed at erasing more than EUR100 billion in debt and unlock a new bailout, a government source said Friday.
The decision was taken after Greece agreed with its eurozone partners that the move was the best way to ensure maximum participation in the deal.
Private creditors are to take losses of more than 50% on their holdings of Greek sovereign debt under the swap.
We expect a range for today in EURUSD rate of 1.3090 to 1.3190
We buying EURUSD at 1.3120
Stop loss at 1.2990
Target at 1.3190 and 1.3230
USDJPY: Speculative investors trading on the Chicago Mercantile Exchange held 61% more net contracts betting that the dollar will appreciate against other major currencies as of March 6, government data showed Friday.
Traders held a net $17.9 billion in wagers that the dollar will rise, according to the Commodity Futures Trading Commission’s weekly report on the commitments of traders. This data is considered representative of hedge funds’ trades, although the CME’s traders make up just a small part of the global currency markets’ volume.
Speculators held $3 billion in net bets that the yen will decrease, or 19,358 contracts. That represented vastly more bets against the yen than the previous week following Bank of Japan moves to contain the currency’s rise to near-historic levels.
We expect a range for today in USDJPY rate of 82.20 and 82.80
WE AVOID TRADING THE PAIR TODAY
