AUDUSD: The Aussie gained some support from China’s official manufacturing Purchasing Managers Index for February, which rose to 51.0 from 50.5 in January and met analysts’ expectations
Local economic data again painted a robust picture for growth. A monthly manufacturing gauge expanded for the third straight month for the first time since August 2010 and business investment numbers show that Australian corporates are committed to massive expansion plans.
Although new business spending and investment fell by 0.3% in the last quarter of 2011, companies remain committed to spending some A$164.2 billion this fiscal year and A$172.9 billion in 2012-2013.
The Reserve Bank of Australia board meets next week and is expected to look through the latest batch of numbers and hold rates steady at 4.25%.
We expect a range for today in AUDUSD rate of 1.0740 to 1.0840
We set limit Short order AUDUSD above 1.0845
Stop loss at 1.0890
Target at 1.0730 and 1.0690
EURUSD: The European Central Bank should lower policy rates further to spur growth and other major central banks around the world must stand prepared to expand their unconventional support to markets should the euro crisis deteriorate
The IMF also targeted a $500 billion increase in Europe’s emergency rescue funds as necessary to tame market pressures and prevent financial contagion throughout the euro zone.
Euro-zone members should be able to conclude their evaluation next week of whether Greece has fulfilled all the preconditions for receiving its second international bailout. The PSI process must now be verified and should be concluded next week
We expect a range for today in EURUSD rate of 1.3230 to 1.3370 (The pair looking more likely to head further south toward 1.3200 region. Due to market high speculate on the EUR, we prefer to stay out of the market for now!)
WE AVOID TRADING THE EUR TODAY
USDJPY: The number of U.S. workers filing new applications for unemployment benefits dropped again last week, the latest sign of improvement in the labor market. The average is now 354,000, down 5,500 from the previous week.
U.S. unemployment stood at 8.3% in January. Figures for February will be released next week. Even with the improvement in the labor market, unemployment is expected to remain high this year.
We expect a range for today in USDJPY rate of 80.80 to 81.60 (Yesterday we set to short the pair at 81.60, the pair reached high at 81.43 before knocking back to 81.10. We also prefer to stay out of the market today)
WE AVOID TRADING THE USD TODAY
