AUDUSD: The Australian dollar was lower Tuesday after the central bank kept open the possibility of interest rates cuts in coming months and major miners warned of slowing iron ore demand.
In minutes of its March 6 policy meeting, the Reserve Bank of Australia said the ongoing risk of a sharp downturn in Europe and uncertainty over how the soaring Australian dollar meant caution was needed.
Markets is now focusing on May policy meeting of the RBA. By that time, the central bank will have seen first-quarter inflation data and will know if there is room to cut interest rates.
We expect a range for today in AUDUSD rate of 1.04250 to 1.0525
We set limit BUY order for AUDUSD at 1.0425
Stop loss at 1.0375
Target at 1.0475 and 1.0520
EURUSD: The Italian government of Mario Monti unveiled the outlines of a major labor overhaul aimed at ushering more young people into the job market and at helping companies downsize during economic downturns.
The overhaul includes measures that would make it easier for companies to lay off workers for economic reasons, although businesses will have to pay those laid-off workers up to 27 months of salary. The overhaul will also beef up Italy’s thin unemployment benefits system by providing jobless insurance to more workers. At the same time, the government aims to help young people into the job market by promoting apprenticeships: contracts whereby first-time workers are trained and can then use those skills in other jobs.
We expect a range for today in EURUSD rate of 1.3140 to 1.3280
We set to SHORT (SELL) EURUSD at 1.3280
Stop loss at 1.3330
Target at 1.3230 and 1.3190
USDJPY: There will be further short-term confidence in the US economic outlook following the run of generally favourable data releases. The US currency will gain support from the decision not to consider further quantitative easing at this stage, although the Fed will still maintain a very loose monetary policy.
The dollar will also gain support on a downgrading of expectations surrounding other major economies with additional backing realistic if risk appetite deteriorates.
We expect a range for today in USDJPY rate of 83.00 and 84.00
WE AVOID TRADING THE PAIR TODAY!
