AUDUSD: Sales expectations for Australian businesses remain near their lowest level in more than two years ahead of the key Christmas sales season, an industry survey released Monday showed. Profit expectations across the business community, however, rose seven points to a reading of +5, though that comes only a quarter after these expectations turned negative for the first time in two years and remain 20 points below a year ago.
For retailers, the biggest hit in recent months has been a surge in the Australian currency to levels not seen in 30 years. The rising cost of living, global economic concerns and a subsequent increase in consumer saving habits have also weighed on spending habits across the country. These factors, say economists, are likely to remain even as Australia’s currency has in the past month come off multi-decade highs.
Executives flagged the biggest risks to their businesses as rising interest rates, wage growth and access to credit. Australia’s central bank is widely expected to hold interest rates steady at 4.75% when it meets on Tuesday.
We expect a range for today in AUDUSD rate of 0.9450 to 0.9570 (We expect the pair continued bearish before the rate figure come out. Although the pair might fall further toward 0.9450 or 0.9380 then will move up quickly once the rate announce.
Set limig BUY order for AUDUSD at 0.9380
Stop loss at 0.9320
Target at 0.9460, 0.9530
EURUSD: Overnight, Greece reported that it would miss budget targets imposed by the International Monetary Fund, European Union and the European Central Bank as part of conditions for its bailout. The distressed Hellenic republic is awaiting word on whether international officials will release a badly-needed EUR8 billion tranche, amid indications that the IMF and other policymakers were reluctant to do so given Greece’s missed targets.
Europe’s festering debt problems have converged with a stream of data showing the global economy, if not yet teetering near recession, is at a minimum screeching to a halt. Those fears were not allayed by strong manufacturing data from around the world, and U.S. construction data that exceeded market expectations.
With market observers increasingly concerned that a Greek default could reverberate across the world’s financial system, blue-chip and technology shares veered between gains and losses in volatile trading on the first trading session of the fourth quarter.
We expect a range for today in EURUSD rate of 1.3030 to 1.3245 (As mentioned yesterday that the pair likely to hit 1.3000 region if it is fail to support at 1.3330 areas.)
Limit BUY order for EURUSD at 1.30000
Stop loss at 1.2930
Target at 1.3100, 1.3200, 1.3300
USDJPY: U.S. stocks fell sharply on Monday, opening the fourth quarter with a rout that left major indexes setting fresh 2011 closing lows, as persistent worries over Greece overshadowed stronger-than-expected domestic manufacturing activity.
The Dow Jones Industrial Average dropped 258.08 points, or 2.36%, to 10655.30. Selling accelerated throughout the trading session, with stocks finishing at their lows of the day. The blue-chip index set a new 2011 low, wiping away the previous level hit on Aug. 10.
The downbeat tone comes after Greece said over the weekend that it would miss its deficit targets this year. The acknowledgment raises concerns that the country may not get necessary bailout funds to avoid a default.
We expect a range for today in USDJPY rate of 76.30 to 76.90 (Yesterday, we suggest to set buy order at 76.60, the pair drop low at 76.53.)
Entry at market price for USDJPY at 76.60 ranges
Stop loss at 76.10
Target at 76.90, 77.20, 77.60 AND possible heading to 80.00
