AUDUSD: The Australian dollar pushed higher Wednesday as speculation continued to rise about the size of a potential bailout plan for Europe.
Partly limiting the pair is the increasingly dovish tone of Australia’s central bank, which on Tuesday left open the possibility of a cut in interest rates as early as November in the minutes from its latest meeting.
We expect a range for today in AUDUSD rate of 1.0130 to 1.0280 (Yesterday, we set limit to SELL AUDUSD at 1.0340, the pair reach high 1.0345, and currently low at 1.0225, reached both of our target. We expect the pair to head further down toward 1.0130-50. If you intend to hold, trail stop loss to 1.0280 from 1.0380.
Set limit Sell at 1.0340 (already SHORT at 1.0340
Stop loss at 1.0280 (from 1.0380)
Target at and 1.0180 and 1.0230
EURUSD: French finance minister Francois Baroin Wednesday reiterated that France believes the best solution to maximize the firepower of the euro zone’s bailout facility is to grant it a banking license with the central bank, a move firmly opposed by both the European Central Bank and Germany.
Banks are able to use sovereign debt holdings as collateral against borrowing from the ECB, a move that would allow the EFSF to leverage the resources provided by euro-zone governments.
We expect a range for today in EURUSD rate of 1.3650 to 1.3800 (Yesterday we suggest to short EURUSD at 1.3815, the pair hit high at 1.3866 before knocking down to 1.3750 ranges. We continue to believe the pair could head to 1.3650. Fail to support this level, could results further drop toward 1.3560.)
USDJPY: The congressional deficit-reduction committee guarded their reaction to an earlier plan to cut the deficit by $3.7 trillion after meeting Wednesday with the group of six senators who proposed it last summer. Members of the Joint Select Committee on Deficit Reduction, a bipartisan group of 12 lawmakers, met behind closed doors in the Capitol for roughly two hours Wednesday with the group of six senators known as the “Gang of Six.”
In economic news, consumer prices rose 0.3% in September, while underlying inflation, which excludes energy and food costs, rose by a tame 0.1%. Separately, U.S. home building jumped 15% in September to its highest level in 17 months as apartment and condominium construction surged. But issuance of building permits, a gauge of future construction, fell 5.0% from a month earlier to the lowest level in five months.
We expect a range for today in USDJPY rate of 76.60 to 76.90 (We continued holding the pair in since we last bought at 76.65)
Limit Buy order for USDJPY at 76.65 ranges (already hit the limit order)
Stop loss at 75.60
Target at 76.90, 77.20 and 77.60
