USD Trading Outlook (06-08-2014)

AUD/USD The post-RBA gains faded in Europe as traders focused more on China’s non-mfg PMI miss and broad based USD strength. Europe slid the pair from above 0.9340 towards 0.9325 into NY’s open. NY pressed the pair lower as the recent US yield slip abated and the USD remained firm. The pair got another push to the downside after US non-Mfg PMI came in well above f/c and at the highest reading since 2005. AUD/USD went on to hit a 0.9294 low. Little bounce was seen as risk sentiment was sour due to soft US equity mkts. Late in the day the pair sat just above 0.9300. There is little in the way of data to drive the pair overnight. Some impact might be felt off NZ jobs data due to AUD/NZD moves but AUD traders have most of their focus on the Oz jobs and RBA’s SOMP due later this week. IF results of those events are bearish for AUD, the pair should clear last week’s low. Once cleared bears target 0.9182/0.9203 where the 200-DMA, 38.2 Fib of 0.8660-0.9505 and May low sit. Day/week RSIs are biased down and won’t impede bears if they decide to take the pair lower.