USD Trading Outlook (11-08-2014)

AUD/USD Europe lifted the pair off Asia’s low as the sour risk sentiment from the air strike new and SOMP faded. The pair lifted from the 0.9240 area and sat just above 0.9270 into NY’s open. The shift in risk sentiment carried over to NY and saw AUD/USD lift to a 0.9288 high but the pair couldn’t get the full benefit of the improved sentiment. EUR short covering saw EUR/AUD lift from 1.4420 towards 1.4480 and USD/JPY lifted towards 102.10. This combination kept AUD/USD from making further gains. Late in the day AUD/USD sat near 0.9275. the longer-term trend remains bearish but the doji formed August 8 may lead to a squeeze. Traders look to next week’s AU July NAB business confidence, Q2 house prices and August consumer sentiment releases for the next cues. Should the results come in soft they will bolster the RBA’s SOMP lowered growth outlook and may see AUD weighed upon again.