AUDUSD: The Austgralia dolar hit tough resistance above the 1.08 level against the USD during the week and dipped to test support below 1.0600 before consolidating in the middle of this range.
The reserve bank minutes were slightly more dovish than expected as the central bank again stated that interest rate could be cut if necessary given a decline in inflation, although governo54 stevens was cautions surrounding the possible of lower reates. Underlying risk appetite was steady which helped underpin sentiment.
We expect a range for today in AUDUSD rate of 1.0650 to 1.0750
We shorted AUDUSD above 1.0710 ranges
Stop loss at 1.0760
Target at 1.0650 and 1.0610
EURUSD: The world’s most powerful economies on Sunday said that the euro-zone has agreed to examine whether to increase its own rescue funds in March, which would then pave the way for more resources to be lent to the International Monetary Fund, to build up its own firepower.
IMF officials have said that the G-20 has set a target to put together a total $2 trillion firewall, which includes the combined resources of Europe’s temporary and permanent rescue funds, the existing IMF resources, and about $600 billion in new loans to the IMF. Meanwhile, the G-20 said that growth expectations for 2012 are moderate and downside risks continue to be high.
We expect a range for today in EURUSD rate of 1.3380 TO 1.3520
We set order limit SHORT for EURUSD at 1.3520
Stop loss at 1.3570
Target at 1.3420 and 1.3360
USDJPY: Speculators cut their bets in favor of a rise in the yen against the dollar, slashing their positions by 42% this week to a net $2.7 billion as of Feb. 21, government data showed Friday.
In the last two weeks, the yen has weakened by more than 4% against the dollar. The Japanese currency, which has shown record strength in the year since Japan suffered from a massive earthquake, tsunami, and nuclear crisis last March, saw a selloff after the Bank of Japan said it would buy a further Y10 trillion of bonds to shore up the Japanese economy.
We expect a range for today in USDJPY rate of 81.00 and 82.00
WE AVOID TRADING THE PAIR TODAY
