USD Trading Outlook (30-09-2014)

AUD/USD A profit taking bounce begun in Europe’s morning faltered a bit in NY. AUD/USD sat just above 0.8740 as NY got going. The pair slid from NY’s open towards 0.8710. AUD/JPY’s drop from above 95.60 towards 93.25 and AUD/NZD’s slip below 1.1220 in early NY trading seemed to be the culprits driving AUD/USD lower. The dip for AUD/USD was short lived though as US pending home sales were soft and the Fed’s Evans stated USD strength will be taken into account in the way it affects trade & inflation. AUD/USD rebounded and hit a NY high of 0.8749. Resting offers from Asian names capped and the pair slid down. Late in the day the pair sat just below 0.8730. There is only second tier Oz data due later so traders look to China’s September HSBC Mfg-PMI. The prior reading was 50.2. A weak result likely sees AUD/USD get hit and the move may be exacerbated as tensions in Hong Kong may be increasing. A scenario such as that might see AUD/USD test the 2014 low at 0.8660.