USD Trading Outlook (08-07-2014)

AUD/USD Overall USD weakness allowed AUD/USD’s recovery off the Asia low to persist in Europe & NY. Action was limited though as NY walked in with the pair just below 0.9360. Steady pressure on the USD saw AUD/USD lift toward 0.9375. No further gains were possible though as NZD/USD’s solid bounce recovery from Asia’s 0.8714 low persisted in Europe & NY. This saw AUD/NZD trace below 1.0690 for a brief time in NY. This prevented AUD/USD from mounting any serious rally and aids to keep the 0.9320/30 support zone in play. Bears hope for a break of that support and an eventual test of the 200-DMA near 0.9200. Numerous data points this week may see bear’s wishes come true. Tonight sees June NAB business conditions & confidence readings. The prior readings were -0.72 and 6.94 respectively. Westpac July consumer confidence is due tomorrow and the big June jobs report is due Thursday. If readings across the board are weak, AUD/USD has a good chance of breaking the support.