AUDUSD: The Australian dollar edged lower in Asia trade Thursday, held hostage once again by concerns about the prospects of a bailout plan for Europe’s debt woes. Together, the developments hurt confidence in risk-sensitive assets, such as the Australian dollar and global equities.
The bigger risk to the Australian economy would be if Europe failed to deliver a comprehensive response to the sovereign debt crisis and found itself in a situation where it was dragging the rest of the world into a second global recession
We expect a range for today in AUDUSD rate of 1.0130 to 1.0265 (If the pair fail to support at 1.0130 will likely heading for a windfall toward 0.9990 and possible retreat to 0.9770. We prefer to stay out of the market today.)
EURUSD: European banks are under pressure due to concerns over their exposure to debt of weak euro-zone countries. European leaders this weekend gather in Brussels to negotiate a package to quell the debt-crisis. They are expected to come with measures to recapitalize banks that may face a shortfall when the crisis spreads.
We expect a range for today in EURUSD rate of 1.3700 to 1.3840 (We also prefer to stay out of the market today)
USDJPY: New claims for unemployment benefits moved down slightly last week, showing a small improvement but indicating the labor market is still weak.
Initial jobless claims fell by 6,000 to a seasonally adjusted 403,000 the week ended Oct. 15, the Labor Department said Thursday. Claims filed in the previous week increased by 4,000 to an upwardly revised 409,000.
The four-week moving average of new claims, a more reliable indicator of the labor market’s performance because it smoothes out volatile weekly figures, fell by 6,250 to 403,000 last week.
We expect a range for today in USDJPY rate of 76.60 to 76.90 (Yesterday the pair hit our first limit at 76.90, the higher was 77.07, we did not close the trade yet)
Limit Buy order for USDJPY at 76.65 ranges (already hit the limit order)
Stop loss at 75.60
Target at 76.90, 77.20 and 77.60
