AUDUSD: The Australian dollar was rangebound Tuesday, but tacked on some gains as markets awaited a short-dated liquidity tender by the European Central Bank.
Markets were waiting to see the take-up of the ECB’s tender of cheap seven-day loans for banks, ahead of an expected bumper offer of three-year loans Wednesday. The take-up and demand for those offers should be key in steering sentiment over the coming days.
We expect a range for today in AUDUSD rate of 1.0700 to 1.0780
We shorted AUDUSD above 1.0750 ranges (we continued to hold our short position)
Stop loss at 1.0830
Target at 1.690 and 1.0660
EURUSD: Last minute Romanian objections meant the European Union failed to sign off on opening accession talks with Serbia Tuesday but the decision looks set to be agreed at an EU heads of government meeting later this week.
At a fractious meeting in Brussels, all 27 EU member states eventually agreed to recommend that heads of government approve so-called candidate status for Serbia when they meet on Thursday and Friday. They said Serbia had met all the conditions laid down for it but they did not formally give their approval.
We expect a range for today in EURUSD rate of 1.3400 to 1.3500
WE AVOID THE TRADE TODAY
USDJPY: U.S. consumer confidence jumped in February, lifted by better assessments of the job market, according to a report released Tuesday.
The Conference Board, a private research group, said its index of consumer confidence increased to 70.8 this month from a revised 61.5 in January, first reported as 61.1. The February index is the highest since 72.0 in February 2011.
Consumer expectations for economic activity over the next six months advanced to a 12-month high of 88.0 this month from a revised 76.7, first put at 76.2.
We expect a range for today in USDJPY rate of 80.20 to 80.80 (Yesterday, we short the pair at 80.60 and booked profit at 80.20.)
We set to re-short the pair at 80.80
Stop loss at 81.20
Target at 80.30 and 79.70
