AUDUSD: A fresh warning about the health of Australia’s economy from the head of a major global company weighed the Australian dollar in Asia Tuesday though the currency still finished local trading higher on the day.
Earlier, a top central bank official said the value of the Australian dollar is having a “material influence on the economic outlook at the moment” and is being factored into policy-setters’ deliberations.
We expect a range for today in AUDUSD rate of 1.0400 to 1.0500
We set limit order to BUY for AUDUSD at 1.0350
Stop loss at 1.0290
Target at 1.0410 and 1.0460
EURUSD: Federal Reserve Bank of New York President William Dudley said Tuesday the euro’s value will likely continue to be determined mostly by the fundamentals of the European economy and debt situation, playing down the impact of the Fed’s swap lines on currency markets.
If the European outlook were to deteriorate, the euro would likely weaken as a consequence. The good news is over the last four or five months the euro has actually strengthened a bit because Europe has actually made some progress in terms of addressing some of their issues.
We expect a range for today in EURUSD rate of 1.3240 to 1.3360 (We expect the pair continue to head south toward 1.3240 and 1.3160)
We already shorting EURUSD at 1.3330
Stop loss at 1.3380
Target at 1.3240 and 1.3210
USDJPY: The U.S. economy is not yet on a certain path to a full recovery. In the recent economic data, noting that new jobs have been created and that measures of consumer and business sentiment have improved. And Europe’s fragile economy has become less worrisome recently.
The financial system looks stronger and more stable. However, the housing market is still “pretty flat,” long-term unemployment remains a problem and that the current 8.3% jobless rate is still too high.
We expect a range for today in USDJPY rate of 82.60 and 83.60
We set limit order to SHORT USDJPY at 84.00
Stop loss at 84.50
Target at 83.30 and 82.60
