USD Trading Outlook (27-08-2014)

AUD/USD The rebound off Asia’s low looked set to continue through the NY session. The o/n lift had AUD/USD near 0.9315 into NY’s open. The lift persisted in early NY as the USD was generally soft and US bond yields were off their overnight highs. AUD/USD began working through offers in the 0.9325/40 structural resistance zone. It hit a high of 0.9331 but couldn’t manage further gains. A recover in US yields and EUR/USD’s inability to rally above 1.3220/30 got USD bulls back in the game. AUD/USD slid from the day’s high into Europe’s close and throughout NY’s afternoon. All of the early NY gains were erased and the pair sat near 0.9305 late in the day to leave the pair nearly unchanged. Another failed attempt to break 0.9330/40 resistance may be taking its toll on recent longs. Frustration may be growing and the increased bid for the USD may see AUD longs give up the ghost. Another test of support in the 0.9230/40 zone may be in order as the recent range looks set to hold.