USD Trading Outlook (23-05-2014)

AUD/USD Spec offers ahead of the daily cloud top and talk of Asian offers in the 0.9300 area stymied the post-China inspires AUD/USD rally. Bears in Europe jumped on the chance to sell and lowered the pair from 0.9274 towards 0.9240 into NY’s open. Early NY action was mixed but a slight bounce took hold after above f/c jobless claim and below f/c US housing data. With the lift being very limited bears took hold again as the USD was firm on rising US yields. AUD/USD slid below the pre-PMI levels & hit a low of 0.9214. No further losses were made though as exporter bids and barrier protection ahead of 0.9200 was too much for bears to contend with. The pair sat just above the low late in the session. With nearly all of the May 21 bounce erased it looks like a break of 0.9200 is only a matter of time. Good stops are reported below that level and if run 0.9170/75 support (200-DMA, channel base, daily cloud base) is the first support to overcome. Beyond that there is little support until the 0.9050 area.