AUDUSD: The Australian dollar pushed near its lowest level in a week Wednesday as sovereign-debt worries in Europe once again spread through markets.
For investors, much of the concern remained on the continued uncertainty over the ability of newly appointed leaders in Italy and Greece to rein in their respective sovereign-debt problems. The move had stocks in retreat, with traders in Australia saying a drop in Shanghai was particularly detrimental for the Australian dollar.
Further dampening the Australian dollar, wages growth moderated sharply in the third quarter, much more than economists expected. Analysts said the moderation will make it easier for the Reserve Bank of Australia to cut interest rates in coming months should it need to, with traders in the interest rate swaps market pricing in a 100% chance of a rate cut in December.
We expect a range for today in AUDUSD rate of 1.0000 TO 1.0150 (Yesterday, we entry the trade at 1.0100, the pair went right down to 1.0066, where our stop loss at 1.0040, but then recover toward 1.0180, hit our first target)
Set Limit BUY order for AUDUSD at 1.0000 ranges
Stop loss at 0.9940
Target at 1.0070, 1.0130
EURUSD: A tentative rally in the euro faded in volatile European trade Wednesday, as the positive impact of a steadier tone in sovereign bond markets was offset by creeping signs of stress in bank funding markets.
Bonds of European nations were sold off Tuesday, and currency traders in Asia said the euro will likely face downward pressure as investor sentiment keeps worsening. The selloff hit bonds issued by triple-A nations such as France and Austria, indicating investor worries about some of the strongest European economies.
We expect a range for today in EURUSD rate of 1.3490 to 1.3650 (Yesterday, the pair went drop low to 1.3435, then crawl back toward 1.3550, hit our first target)
Set Long for EURUSD at 1.3415 ranges
Stop loss at 1.3370
Target at 1.3470, 1.3550
USDJPY: China and other major foreign investors boosted their holdings of U.S. Treasurys in September, seeking safety as the sovereign debt crisis continued to grip Europe.
