USD Trading Outlook (05-11-2010)

U.S. Dollar Trading (USD) continued to be battered on Thursday as the fallout from the FOMC to extend stimulus continued to weigh heavy on the dollar. Share markets rally ensured that risk was on in FX markets, hindering the USD to trade at record lows against the Aussie Dollar and XAU in late session trading. The Dow Jones rose by 1.96%, S&amp P 500 up by 1.7% to trade at its highest level in 2 years, and the NASDAQ also higher by 1.46%. In Domestic news, Weekly Jobless claims rose by 20K jobs to 457K, yet did little to hinder investor optimism. Keeping with the theme of Jobs data, focus now shifts to NFP on Friday with forecasts of +60K jobs for the month of October. Pending Home Sales will accompany the NFP release, whilst Fed chairman Bernanke is scheduled to speak late on in the day.