AUDUSD: The Australian dollar rebounded in Asian trading Tuesday, helped by improving trade data from China and strong building approvals in Australia. For November, the total number of Australian houses and apartments approved for construction rose a seasonally adjusted 8.4% from October. Economists had expected on average that total residential building approvals rose 6.5% from the month before.
Further aiding the currency’s gain, approvals for Australian housing construction surged in November, providing one of the first signs that a rate cut from the country’s central bank late last year could help a depressed housing market.
We expect a range for today in AUDUSD rate of 1.0100 to 1.0200 (We expect the pair to head further south toward 1.0160 ranges)
Set limit SHORT order for AUDUSD above 1.0300 ranges
Stop loss at 1.0360
Target at 1.0210 and 1.0160
EURUSD: The euro founders’ lofty dreams and goals are increasingly taking a backseat to fear that a Greek default could still plunge Europe into recession and financial chaos. Against this backdrop, Merkel invited European leaders to Berlin for bilateral talks to nail down the details of a deal to coordinate euro-zone budget and economic policies, put a cap on government borrowing, and introduce tougher sanctions on violators of the rules of European monetary union.
The so-called fiscal pact was agreed by European leaders at a summit in December with the ambitious goal of finalizing the pact by the end of March.
We expect a range for today in EURUSD rate of 1.2680 to 1.2800
Short EURUSD at 1.2800 ranges
Stop loss at 1.2860
Target at 1.2740 and 1.2680
USDJPY: U.S. consumers were less pessimistic about the economy in January and grew more optimistic about their personal financial outlooks. The index is five points above its 12-month moving average but just 3.1 points above the 44.4 recorded in December 2007 as the economy entered recession. The record for the index is 49.9. Index readings above 50 indicate optimism; below 50 indicate pessimism.
The six-month economic outlook, a measure of how consumers feel about the economy’s prospects over the next six months, gained 8 points to 50.8. The personal financial outlook, a gauge of how Americans feel about their personal finances in the next six months, rose 2.9 points to 55.7. Meanwhile, confidence in federal economic policies, which measures views on how government economic policies are working, improved by 3.1 points to 36.
We expect a range for today in USDJPY rate of 76.60 to 77.20
We set limit BUY order for USDJPY at 76.60
Stop loss at 76.10
Target 77.30 and 77.60
