USD Trading Outlook (24-06-2014)

AUD/USD spent the NorAm session slowly dribbling back the gains made after yesterday’s China PMI beat. Specs were sellers against the April highs (.9460) figuring that with Oz interest rates still soft and the Shanghai Index unable to get too far from the critical 2000 level it will take more than one number to change the currency’s fortune significantly. Immediate support rests in the .9390 area, which was the inflection point for the PMI data and the 200 hma (see chart below). Otherwise, the USD remained softer against the other majors as US rates continue to recede, much to the consternation of Wall St. Vol continues to be a killer for the higher rate/higher USD contingent.