In the early Asian session, the US Dollar Index quickly rebounded. The current quote is 74.06. The high-interest currencies such as the Euro and the Australian dollar have retreated from their highs. The safe-haven currencies, the Japanese Yen and the Swiss Franc, remain strong, according to thinkforex. However, due to Japan's forex market intervention and a slight decrease in expectations for the US QE3, the market remains volatile with significant fluctuations.
The US Department of Commerce announced yesterday that the monthly rate of durable goods orders in the US increased by 4.0% to $201.45 billion, surpassing the expected increase of 2.0%. The Congressional Budget Office of the United States stated that mainly due to the agreement on deficit reduction and lower interest rates, the agency has lowered its forecast for the US budget deficit.
The French government now expects the GDP growth rate for 2011 to be 1.75%, down from the previous expectation of 2.00%. At the same time, it has revised down the GDP growth forecast for 2012 from 2.25% to 1.75%. Data released by Eurostat showed that the monthly rate of industrial orders in the Eurozone fell by 0.7% in June, while the annual rate increased by 11.1%, missing the expected increase of 12.1%. In her speech, German Chancellor Angela Merkel once again rejected the proposal for common Eurozone bonds, stating that they would be of no help to the crisis currently faced by the Eurozone.
Euro/USD: The overnight volatility of the Euro was extremely limited, maintaining a medium-term downward trend with short-term oscillations. Next week’s market could potentially show a trend. It is suggested to trade within the range of 1.4470-1.4370 for the day, with a stop-loss of 40 points if effectively broken.
USD/JPY: The USD/JPY showed some improvement, rebounding near 77, but the narrow-range oscillation pattern has not been broken, according to forex platform rankings. It is suggested to buy at the lower limit of the 77.50-76.60 range for the day, with a stop-loss of 40 points if effectively broken, targeting the upper limit of the range.
AUD/USD: The AUD continues its step-by-step advance, maintaining a short-term upward channel, but the medium-term upward trend has yet to form. It is suggested to sell at the upper limit of the 1.0510-1.0400 range for the day, with a stop-loss of 40 points if effectively broken, targeting the lower limit of the range.