AUDUSD: The Australian dollar Friday recovered some of the broad losses of this week, moving just below parity with the U.S. dollar helped in part by positive U.S. employment data.
There was a further concern over the international growth outlook, especially given doubts surrounding the Asian economy while concerns over the implications to a tightening in credit also had an important impact.
We expect a range for today in AUDUSD rate of 0.9910 to 1.0030 (Last week, we re-entry the trade at 0.9940, the pair reached high at 1.0018)
We set limit BUY order for AUDUSD above 0.9900
Stop loss at 0.9830
Target at 0.9960, 1.0030
EURUSD: The Eurowas subjected to heavy selling pressure before finding some respite later in the week. There were persistent doubts surrounding the EU Summit with fears that little progress had actually been made with progress towards tighter fiscal integration not addressing the near-term difficulties.
There will still be a high degree of uncertainty and there will be pressure on the ECB to cut interest rates further, especially as there will expectations of recession. In this context, the Euro will be undermined by a lack of yield support and structural fears will trigger bouts of strong selling pressure.
We expect a range for today in EURUSD rate of 1.2970 to 1.3130
We set limit BUY order for EURUSD above 1.3000 ranges
Stop loss at 1.3250
Target at 1.3090, 1.3130 and 1.3230
USDJPY: The latestUS economic data has maintained expectations that the economy can avoid recession in the short-term. The monetary policy implications will be limited as the Fed will maintain interest rates close to zero throughout this period, but there should be some positive impact on capital inflows.
The US industrial production data was weaker than expected with a 0.2% monthly decline for November. Jobless claims fell to 366,000 in the latest week from 385,000 previously, maintaining a slightly more positive view over US prospects. The US retail sales data was slightly weaker than expected with a headline and core increase of 0.2% for November.
Although this dampened optimism to some extent, there was still confidence that the US economy was at least holding its own.
We expect a range for today in USDJPY rate of 77.60 to 78.20
We set limit BUY order USDJPY at 77.45
Stop loss at 76.45
Target at 77.80 and 78.15
