AUDUSD: The Australian dollar was higher Monday as the mood of global markets toward the U.S. dollar soured after a batch of data Friday showed the world’s biggest economy has a lot of work to do before it gets off its knees.
Economists have warned that if the efficiency of the Australian economy is not raised, the potential for inflation will increase. The RBA itself has highlighted the issue and expressed similar warnings.
Looking ahead, the currency could be affected by the release of the RBA’s policy meeting minutes Tuesday at 0030 GMT. The RBA surprised traders at its last policy meeting by keeping in place the potential for lower interest rates.
We expect a range for today in AUDUSD rate of 1.0550 to 1.0650
We CONTINUED to set SHORT AUDUSD at 106.60
Stop loss at 1.0720
Target at 1.0620 and 1.0570
EURUSD: There was relief that the Greek situation had been resolved for now despite an important lack of confidence in the medium-term outlook. There was speculation that an additional support package may be required for Greece and there were fears that Portugal would get dragged towards a default in the medium term. There were also further tensions surrounding Spain’s 2012 budget target.
There were persistent doubts surrounding the wider Euro-zone economic outlook. Markets were also expecting the ECB to maintain an aggressive monetary policy to help salvage the banking sector which dampened demand for the Euro.
We expect a range for today in EURUSD rate of 1.3150 to 1.3250 (Yesterday, we short the positive at 1.3150, it hit our stop loss at 1.3185 (loss 35 pips) but then we went long at 1.3205 and hit our target at 1.3245 (gain 40 pips), higher was 1.3263)
WE AVOID TRADING THE PAIR TODAY!
USDJPY:U.S. recovery cautiously, noting the outlook for monetary policy depends on what happens with the data.
U.S. consumer sentiment for March and industrial production data for February disappointed the markets ahead of the weekend, delivering enough of a hit to sentiment to override earlier gains driven by better news from the U.S. job market
We expect a range for today in USDJPY rate of 83.00 and 84.00 (Yesterday, we shorted the pair at the current market price 83.50 and hit our target at 83.10, the lowest price was 82.95)
WE AVOID TRADING THE PAIR TODAY!
