AUDUSD: The Australian dollar was slightly higher in Asia trading Monday amid increased confidence that China is close to announcing further steps to drive economic growth.
Chinese Premier Wen Jiabao raised hopes of greater stimulus for the economy over the weekend, saying such moves are urgent. “No matter the fiscal policy or the monetary policy, we cannot afford to wait and see and miss the right timing. We must implement the policies in a timely manner if we believe they’re right,” he added.
We expect a range for today in AUDUSD rate of 0.9850 to 0.9950
STAND ASIDE
EURUSD: European leaders are meeting this week to flesh out ways to boost economic growth and jobs, but euro zone bonds and other far-reaching changes could come up for debate.
Last week it emerged that national governments and EU institutions have begun to prepare for Greece’s possible exit from the euro zone ahead of a second round of elections in the country next month.
While fears of a Greece exit from the euro zone abated a tad with reassurances from European leaders of keeping the troubled country in the common currency, there still was no clarity on how the sovereign-debt problems in Europe would be handled.
We expect a range for today in EURUSD rate of 1.2730 to 1.2830 (We mentioned yesterday that the pair like to have a little resistance at 1.2800 levels, the pair went down toward 1.2728 before crawling back)
We Sell EURUSD at 1.02810 ranges
Stop loss at 1.2860
Target at 1.2750 and 1.2710
USDJPY: The People’s Bank of China was given a computer link to the U.S. Treasury Department’s auction system for purchases of U.S. government debt. China can buy debt without bidding through primary dealers, but has to go through the market to sell debt
China’s yuan rose against the U.S. dollar late Monday after the central bank guided the currency higher via a daily reference rate, but most of its gains were pared by corporate demand for the greenback.
We expect a range for today in USDJPY rate of 79.00 to 79.70
We BUY USDJPY at 79.30 ranges
Stop loss at 78.80
Target at 79.70 and 80.10
Note (If the pair break through our stop loss will likely head toward 78.00 and 77.80)
