AUDUSD: The Australian dollar was slightly higher late Friday, but traders say the currency faces challenges ahead of the Reserve Bank of Australia’s policy meeting Tuesday.
Expectations of an interest rate cut by the RBA next week have risen steadily in recent days, with traders now pricing in a 50 per cent chance of a cut. The RBA cut interest rates in late 2011, but has since left them on hold. The cash rate target now stands at 4.25%.
We expect a range for today in AUDUSD rate of 1.0330 to 1.04300
We currently short AUDUSD at the current market price 1.0400
Stop loss at 1.0450
Target at 1.0340 and 1.0290
EURUSD: The European crisis is far from over and the European economy has little chance of recovery in the current environment, in which the region’s banks are shrinking their balance sheets amid a weak economy
For the euro, investors held a net $14.8 billion in bets that the common currency will decline in value against the dollar. That represented 89,129 net contracts, up 8% from the week before.
We expect a range for today in EURUSD rate of 1.3370 to 1.3370
We are shorting EURUSD at 1.3340
Stop loss at 1.3370
Target at 1.3270 and 1.3210
USDJPY: Speculative investors trading on the Chicago Mercantile Exchange more than doubled their net wagers against the yen as of March 27. They held a net $10.2 billion in bets against the yen, or 67,622 contracts, marking the largest short position in the yen since July 2007
Traders piled into bets that the dollar will rise against other currencies, wagering a net $19.3 billion, 70% more than the previous week.
We expect a range for today in USDJPY rate of 81.00 TO 82.60
WE STAY ASIDE USDJPY TODAY!
