USD Trading Outlook (31-07-2014)

AUD/USD Bears gently persuaded AUD/USD lower in their session as the USD was generally firm. They pushed form 0.9390 and had it near 0.9365 as NY got going. ADP missed estimates and allowed a small bounce for the pair but it was quickly wiped out after GDP saw a big upside surprise. US bond yield and the USD were solid and remained so into Europe’s close. AUD/USD dropped post-GDP and hit 0.9309 before a small bounce had it near 0.9320 into the Fed. Post-Fed saw a knee-jerk spike down as algo grabbed onto the Fed’s notes on inflation. A new trend low of 0.9301 was hit but the pair reversed as notes to the Fed remaining accommodative inspired USD bulls to take some profit. AUD/USD lifted to 0.9355 but slipped again late in the day and sat just above 0.9320. Aussie building permits for June are due later and might impact the pair slightly but traders turn most of their focus to more US data tomorrow & Friday. Jobless claims and July PMI are due Thur & NFP is Fri. If those results are solid USD bulls will strike again. AUD/USD’s slide then likely deepens and 0.9185/0.9200 is eyed.