AUDUSD: The Australian dollar was slightly higher Monday despite signs of growing risk aversion in international markets with the gold price touching a fresh record high and shares across Asia weaker.
Consumer confidence has also been dented by reductions in pension fund earnings as a result of the global financial crisis.
Locally, there is raft of speeches by central bank officials this week. Deputy Governor of the Reserve Bank of Australia Ric Battellino will speak Tuesday, while the leadership of the central bank will give a testimony to a parliamentary committee on economics Friday.
We expect a range for today in AUDUSD rate of 1.0320 to 1.0450 (We set to go long at 1.0320, stop loss at 1.0260, target at 1.0380 and 1.0420)
EURUSD: Currency markets were relatively subdued during European trading hours Monday with the euro locked into a trading range against the dollar.
All euro zone countries need to approve a bilateral deal under which Greece would provide Finland with collateral in exchange for receiving further aid.
The German government hasn’t seen the agreement between Finland and Greece yet. Greece and Finland need to explain the deal to their euro-zone peers, adding that it remains to be answered whether special solutions for individual member states can reach a consensus in the euro zone.
We expect a range for today in EURUSD rate of 1.4280 to 1.4450 (We set long at 1.4280, stop loss at 1.4260, target at 1.4320 and 1.4360. Alternatively short position at 1.4450, stop loss at 1.4510, target at 1.4400 and 1.4360)
USDJPY: Attention remains fixed on nervous international markets amid growing expectations the U.S. Federal Reserve will soon announce a further round of quantitative easing measures to bolster market confidence.
Bernanke is scheduled to speak at the end of the week at a conference of central bankers at Jackson Hole in the U.S. Late last week, a number of U.S. banks revised lower economic growth forecasts for the world’s largest economy.
Japan’s Finance Minister, who controls decisions on intervention, stepped up his rhetoric against the yen’s strength Monday, saying recent “one-sided yen moves” have been accelerating.
We expect a range for today in USDJPY rate of 76.50 to 77.00 (Yesterday, the pair spike up to 77/00 ranges where it hit our target band at 77.90. We would prefer to stay out at this current range)
