AUDUSD: The Australian dollar was higher late Wednesday, trapped in a narrow range below parity with its U.S. counterpart amid ongoing fears surrounding the fate of the euro-zone economies.
National Australia Bank strategists said the local unit is still being underpinned by last week’s strong growth figures, which showed Australia’s economy recorded the strongest growth in the developed world in the first quarter, along with better-than-expected Chinese data at the weekend.
In spite of that added purchasing power, and 75 basis points of cuts to official interest rates by the RBA since May 1, the mood of consumers remains subdued according to a private sector survey.
We expect a range for today in AUDUSD rate of 0.9900 to 1.0000
We set limit BUY order for AUDUSD at 0.9850
Stop loss at 0.9790
Target at 0.9920 and 0.9960
EURUSD: Greece, Portugal, Ireland and Spain have now turned to the European Union and the International Monetary Fund for help, with Greece due to hold elections Sunday, while the Spanish government has requested a EUR100 billion bailout for local banks.
The EU Saturday committed to loaning Madrid the money to help the country fund its ailing banks under water from bad real estate loans. Spain’s banking problems have pushed up its borrowing costs, further raising the risk that the euro-zone’s sovereign debt crisis may spread to the region’s biggest economies and ultimately threaten to engulf the global economy.
We expect a range for today in EURUSD rate of 1.25000 TO 1.2600
We set limit BUY for EURUSD at 1.2460
Stop loss at 1.2410
Target at 1.2570 and 1.2630
USDJPY: The following are forecasts for this week’s remaining
DATE TIME RELEASE PERIOD CONSENSUS PREVIOUS
(ET)
Thursday 0830 Jobless Claims Jun 9 375K 377K
0830 Consumer Prices May -0.3% Unch
-excl food & energy May +0.2% +0.2%
0830 Current Acct Balance 1Q -$134.0B -$124.1B
Friday 0830 NY Fed Empire St Svy Jun 10.7 17.09
0915 Industrial Production May +0.1% +1.1%
0915 Capacity Utilization May 79.2% 79.2%
0955 Reuters/UMich Consumer
Sentiment (prelim) Jun 77.0 79.3*
We expect a range for today in USDJPY rate of 79.00 to 79.80
We set limit BUY for USDJPY at 79.10
Stop loss at 78.60
Target at 79.60 and 79.80
