AUDUSD: The Australian dollar was little changed late Monday after ceding earlier gains as weak domestic housing data curtailed an initial boost from stronger-than-expected Chinese manufacturing data.
A fundamental strengthening of the U.S. dollar against most major currencies also weighed on the local unit. Australian dollar ahead of the Reserve Bank of Australia’s policy meeting Tuesday. The RBA cut interest rates in late 2011, but has since left them on hold. The cash rate target now stands at 4.25%.
We expect a range for today in AUDUSD rate of 1.0330 to 1.0450 (Yesterday, we shorted the pair at 1.0400, the pair head down toward 1.0365, but then crawling back)
We shorted AUDUSD at 1.0400 (continued to hold)
Stop loss at 1.0450
Target at 1.0340 and 1.0290
EURUSD: A new dollar funding benchmark fixed for the first time Monday, highlighting that smaller banks in the euro zone are having to pay over the odds to get their hands on greenbacks.
The European Banking Federation, which tracks interbank lending rates–known as Euribor–within the European monetary union, for the first time Monday published dollar interest rates quoted by its panel members.
Three-month dollar Euribor was fixed at 0.957%, more than double the corresponding London Interbank Offered Rate–or Libor–which fixed at 0.468%.
We expect a range for today in EURUSD rate of 1.3250 to 1.3370 (Yesterday, we shorted the pair at 1.3340, the pair heading down toward 1.3280, we closed out the trade, if you have not close the trade, then continue to hold.)
We shorted EURUSD at 1.3340 (continued to hold)
Stop loss at 1.3370
Target at 1.3270 and 1.3210
USDJPY: U.S. job gains are providing momentum to the U.S. economy. The ESI advanced to 48.1 in March, from 47.4 in February. The ESI is now at its highest reading since December 2007, although the rate of progress last month was slower than in previous months.
Positive coverage continues to be driven by better news on the labor markets. Better job growth will provide the money and confidence consumers need to keep lifting their spending, a key driver of U.S. economic activity.
We expect a range for today in USDJPY rate of 81.50 to 82.40
We entering USDJPY at 81.80
Stop loss at 81.50
Target at 82.30 and 82.60
