AUDUSD: The Australian dollar jumped to the day’s high against the dollar after the People’s Bank of China unexpectedly cut its key lending and deposit rates Thursday.
The currency added some 0.3% gains against the greenback to trade at the day’s high of $0.9992 from $0.9967, after China announced a 25 basis point cut in both its one-year lending and deposit rates, effective from Friday. The one-year lending rate now stands at 6.31% from 6.56% previously, while the deposit rate is now at 3.25% from 3.50% before.
We expect a range for today in AUDUSD rate of 0.9850 to 0.9950 (The pair might head further down toward 0.9860)
STAND ASIDE
EURUSD: The fallout from a Greek exit from the euro area would be disastrous and its continued membership in the common-currency bloc must be pursued by the next government elected in the June 17 elections, former Greek Prime Minister Lucas Papademos told an audience of bankers here Thursday evening.
In an impassioned defense of the much-criticized economic adjustment program for Greece, Mr. Papademos insisted that it was the only way forward for the country, and urged both ambitious fiscal consolidation and deeper structural reforms to ensure that conditions are met for Greece to remain a member of the euro zone.
We expect a range for today in EURUSD rate of 1.2510 to 1.2610 (We set a shorted at 1.2610, and booked profit at 1.2550)
We set to SHORT EURUSD at 1.2610 (We closed out at 1.2550)
Stop loss at 1.2640
Target at 1.2540 and 1.2520
USDJPY: All banks, not just bigger lenders, will have to put in place tougher capital rules under a draft proposal U.S. regulators unveiled Thursday, but they will have until 2019 to implement the rules completely.
The proposal, which the Federal Reserve Board is expected to approve later Thursday, is based on an agreement struck by international regulators in Basel, Switzerland, more than a year ago. The rules are designed to increase the resiliency of the banking system during times of economic or financial stress.
We expect a range for today in USDJPY rate of 79.00 to 80.00
We set limit BUY for USDJPY at 79.10
Stop loss at 78.60
Target at 79.60 and 79.80
