USD Trading Outlook (23-06-2014)

AUD/USD Further frustration with the pair’s ability to clear June’s high and rising US bond yields led to further profit taking in the overnight session. The pair sat near 0.9400 as NY got going. Pressure remained in early NY as the bond yield rise persisted and the USD was broadly bid with the exception being against CAD. Bids into 0.9385/90, where the 200-HMA sat) were filled and a low of 0.9378 was made. A give back of yield gains alleviated some pressure into the afternoon & the pair sat just below 0.9390 late in the day. Bulls may be close to throwing in the towel in the s-t. The pair’s inability to hold above 0.9400, RSIs rolling over from near o/b territory and narrower yield spreads are concenrs for AUD longs. There is little in the way of Oz data next week so traders will look to China’s June HSBC Mfg PMI, EZ MFg PMIs and the US Q1 GDP for AUD direction.