AUDUSD: The Australian dollar was little changed late Tuesday but looking fragile after the Reserve Bank of Australia signaled it is close to cutting interest rates again.
RBA Governor Glenn Stevens announced to markets that interest rates were left on hold at 4.25%, but added that the economy was now growing at below average rates. Stevens said the central bank wants to take in another quarter of inflation data before potentially moving to cut interest rates.
The first quarter consumer price index data is due April 24 and economists said the data will frame the May 1 policy meeting at the RBA.
We expect a range for today in AUDUSD rate of 1.0330 to 1.0450 (The pair could head toward 1.0255 and 1.0100)
We shorted AUDUSD at 1.0400 (continued to hold)
Stop loss at 1.0340 (from 1.0450)
Target at 1.0255 and 1.0100 (reached both target 1.0340 and 1.0290)
EURUSD: Tensions on financial markets have eased, but only sluggish growth can be expected in the months ahead. The groups also stuck to their forecast of the second quarter, where growth is expected to stagnate.
The outlook says annual inflation was at 2.6% at the end of the first quarter and will be 2.4% at the end of the second quarter. This compares with 2.1% and 1.9% forecast for the time periods in January.
We expect a range for today in EURUSD rate of 1.3150 to 1.3250
We shorted EURUSD at 1.3340 (continued to hold)
Stop loss at at 1.3245 (from 1.3370)
Target at 1.3145 to 1.3050 (target reached at 1.3270 and 1.3210
USDJPY: The minutes showed that Federal Reserve officials remained hesitant about any additional bond-buying or other new programs to bolster the economy. Such measures, which ultimately boost financial market liquidity, have been seen as supportive of higher-yielding assets like emerging market currencies in the past.
We expect a range for today in USDJPY rate of 81.50 to 82.40 (We went long yesterday at 81.80, it hit both of our target 82.30 and 82.60)
We entering Short USDJPY at 82.00
Stop loss at 82.40
Target at 81.40 and 81.20
