USD Trading Outlook (19-06-2014)

AUD/USD Tight ranges dominated overnight and most of NY trade. The miss to the US C/A barely moved AUD/USD within of its 0.9327/47 o/n range. Action picked up quickly after the Fed. An initial spike lower in US yield due to lowered 2014 GDP forecasts from the Fed sent AUD/USD just above 0.9365. A rebound in yields then saw a new s-t trend low of 0.9322 hit. However, when it became clear the Fed wasn’t going to drop any hawkish surprises on the mkt the USD turned heavy. AUD/USD made a steady ascent thereafter & lifted above 0.9400. Little pullback was seen and the pair sat just below the day’s highs late in the session. The bounce off the daily cloud top & 55-DMA have bulls breath a sigh of relief. They now need to clear June’s high to take control. They have work to do though as yield spreads don’t reflect a bullish view. If 0.9440 isn’t cleared soon a retest & break of 0.9320 could be due.