AUDUSD: The gain in the Australian dollar came despite a report in The Wall Street Journal that disagreements between the International Monetary Fund and Germany were holding up Greece’s attempts to restructure more than EUR200 billion in debt. Those talks and developments in Greece had weighed on the Australian dollar for parts of the last few months.
Further helping the local currency was a report of improving U.S. private-sector job growth, which served as the latest sign of an improving outlook in that country.
We expect a range for today in AUDUSD rate of 1.0640 to 1.0740 (Yesterday, we shorted AUDUSD above 1.0700, we decide to close out at the current market price without a loss trade)
WE AVOID TRADING THE PAIR TODAY
EURUSD: Moves by the European Central Bank to provide low-cost lending to banks has both reduced stresses on the continent’s banking system and lowered borrowing costs for some at-risk countries
Bernanke warned that until countries at Europe’s periphery most affected by the debt crisis address their fundamental lack of competitiveness, the long-term growth prospects for Europe would continue to be challenged.
We expect a range for today in EURUSD rate of 1.3100 to 1.3210 (Yesterday, we set a short position at 1.3160, the pair hit our first target at 1.3100 then continued to fall low 1.3080. We have closed out our position)
WE AVOID TRADING THE PAIR TODAY
USDJPY: Investors also watched for signals from Federal Reserve Chairman Ben Bernanke, who testified before U.S. lawmakers Thursday. Mr. Bernanke described the pace of the U.S. economic recovery as “frustratingly slow,” although he said the Fed anticipated higher levels of growth in the coming year than were seen in 2011. Mr. Bernanke also warned of the importance of addressing fiscal challenges in the U.S., pointing to the Europe’s sovereign-debt crisis as an example of out-of-control fiscal policies.
We expect a range for today in USDJPY rate of 76.00 to 76.60
Long USDJPY at 76.20 ranges (continued to hold our position)
Stop loss at 75.50 (any price below 76.00 could have been intervention from Japan)
Target 76.65 and 77.20
