AUDUSD: A leading index of the Australian economy released Wednesday grew at an annualized rate of 2.6% in January, compared with growth of 1.7% in December.
Over the last six months the index growth rate has slowed from a comfortably above trend pace of 4.4% in August to 2.6% in January.
Weak gross-domestic-product growth estimates released the day after the March Board meeting and more patchy reads on labor market conditions challenge the view that the economy overall is growing at around trend
We expect a range for today in AUDUSD rate of 1.0320 to 1.0420 (Yesterday, we bought the pair at 1.0425 and the pair reached our target at 1.0475)
We set limit BUY order at 1.0260
Stop loss at 1.0210
Target at 1.0360 and 1.0420
EURUSD: The euro fell sharply in early European trading Thursday after a raft of disappointing euro-zone survey data. The euro slumped to as low as $1.3151 against the dollar while it also came under pressure against the yen and the pound.
The sell off was sparked by a much weaker than expected German manufacturing purchasing managers’ index for March, which came in at 48.1. Economists had expected a reading of 51. Germany’s March services PMI was also weaker than expected.
We expect a range for today in EURUSD rate of 1.3120 to 1.3220
We set limit BUY order for EURUSD at 1.3080
Stop loss at 1.3020
Target at 1.3150 and 1.3180
USDJPY: A top Federal Reserve official said late Thursday that he will not support another round of monetary easing because the economy is already flush with idle cash.
The central banker acknowledged that the economy is in “much better shape than before” though growth is still at a pace slower than he’d like. But if economic readings keep showing improvements, it’s further reason he cannot justify offering more monetary stimulus.
We expect a range for today in USDJPY rate of 82.10 and 83.10
We set limit BUY order for USDJPY at 81.60
Stop loss at 81.10
Target at 82.30 and 82.60
