AUDUSD: The Australian dollar was lower Wednesday as markets meandered in Asia, still unsure of what to do after the announcement in Europe this week of a deal to secure Greece’s future.
At its current levels, the Australian dollar is also beginning to look weak from a technical perspective
Looking ahead, Reserve Bank of Australia Governor Glenn Stevens will report to parliament on Friday. Stevens is expected the shed more light on why the RBA kept interest rates steady in February
We expect a range for today in AUDUSD rate of 1.0550 to 1.0670
We set limit BUY order for AUDUSD at 1.0550
Stop loss at 1.0510
Target remain 1.0615 to 1.0665
EURUSD: The euro, for once, took a back seat, range-trading against the dollar amid caution over whether Greece would follow through with fiscal reforms after an ambitious EUR130 billion rescue deal was struck Tuesday.
The focus will now be on the implementation of the private-sector involvement and the participation rate which, if not enough, could lead to a credit event. The details of the deal will be resolved over the next few weeks and an orderly Greek default cannot be completely ruled out.
We expect a range for today in EURUSD rate of 1.380 to 1.3270
We are shorting EURUSD at the current market price 1.3240 ranges
Stop loss at 1.3280
Target at 1.3180 and 1.3130
USDJPY: The yen fell to Y80 against the dollar for the first time since August, hammered by the Bank of Japan’s stepped-up efforts to revive the Japanese economy. Japan’s currency has tumbled every day since Feb. 14, when the country’s central bank said in a surprise announcement it would add Y10 trillion to its asset-buying program.
The aim is to stimulate Japan’s economy, which contracted by 2.3% in the fourth quarter, and last year posted its first annual trade deficit since 1980. The Bank of Japan’s efforts put downward pressure on the yen by increasing the money supply. Japan also intervened directly three times last year to weaken the yen, which hit a post-World War II record high of Y75.31 in October.
WE STAY OUT USDJPY for NOW!
