USD Trading Outlook (10-07-2014)

AUD/USD Tight ranges prevailed for Europe and most of NY. The pair held a 0.9390-0.9418 range for the most part as the mkt awaited the FOMC minutes. The Fed’s tip to ending QE in October if econ conditions warrant it spiked the USD up. AUD/USD broke the range low & hit 0.9383 in no time. No follow through was seen though as the minutes made no note of when rates will rise. US yields and USD gave back their gains. AUD/USD then rallied to a new session high of 0.9425. Little pullback was seen and the pair sat just below the high late in the day. Traders now turn their attention to the June Oz jobs data and China trade figures. Should the results come in soft, the recent AUD/USD rise may come under pressure. A retest of the 0.9320/30 support zone might then be in the cards.