AUDUSD: The Australian dollar was weaker late Monday as markets grow nervous about the risks of a further weakening in the U.S. economy, while fresh concerns have emerged about China.
On Friday, the U.S. nonfarm payrolls report showed 80,000 jobs were added in June, lower than the 100,000 average forecast by economists polled by Dow Jones Newswires. The unemployment rate was unchanged at 8.2%.
We expect a range for today in AUDUSD rate of 1.0190 to 1.0320
We bought AUDUSD at 1.0190 (continued to hold)
Stop loss at 1.0390 (from 1.0130) (adjust stop loss to protect our trade)
Target at 1.0280 and 1.0350
EURUSD: France joined Germany and The Netherlands in selling shorter-dated securities at negative yields Monday in a growing sign that investors are so concerned about the ability of European policymakers to deal with the debt crisis roiling the region that they were willing to pay relatively safe countries simply for the privilege of parking their funds.
The average yields turned negative at a sale of 13-week and 24-week bills, the first time on record that France has sold debt at a negative yield. The outcome of the auction, which mirrors similar moves in short-dated German and Dutch debt auctions, coincided with a renewed sell-off in Spanish debt that cast fresh doubts over the ability of the Spanish government to keep borrowing funds from the market.
We expect a range for today in EURUSD rate of 1.2240 to 1.2370
STAND ASIDE
USDJPY: Federal Reserve official on Monday said the central bank should stand ready to provide new stimulus to the economy if conditions warrant it. ” Federal Reserve Bank of San Francisco President John Williams said “we stand ready to do what is necessary to attain our goals of maximum employment and price stability.”
Because of that, “it is essential that we provide sufficient monetary accommodation to keep our economy moving towards our employment and price stability mandates,” the official said. If the Fed does need to ramp up its stimulus activities, “the most effective tool would be additional purchases of longer-maturity securities, including agency mortgage-backed securities.”
We expect a range for today in USDJPY rate of 79.30 to 79.90
We bought USDJPY at 79.45 (continued to hold)
Stop loss at 79.15
Target at 79.85 and 80.10
