USD Trading Outlook (14-08-2014)

AUD/USD A steady drift up took hold in Europe after the August Westpac confidence data improved. The ascent had AUD/USD near 0.9295 into NY’s open. It held steady near that level in US retail sales. The sales report had no redeeming qualities and the USD dived lower across the board. AUD/USD rallied to a 0.9320 high. Offer touted in the 0.9320/30 area halted the rise. Much of the USD losses post-sale were erased in EUR/USD and USD/JPY. This aided to push AUD/USD away from the high and it steadily drifted lower fro the remainder of the session. Late in the day the pair sat near 0.9305.There is little data in Asia’s session to drive the pair so traders will look to EZ GDP and US weekly claims data for their next cue. For now the recent down trend remain intact. The T-L off the April 2013 high is formidable and the pair continues to hold below the daily cloud and 55-DMA. Only above the 0.9475/80 area will the recent drop be put in doubt.