USD Trading Outlook (23-10-2014)

AUD/USD The pair held to a tight but choppy range (0.8766/0.8816) for the NY session. NY walked in with the pair sitting just above 0.8800. An early bout of USD strength brought on by the above f/c headline CPI number had AUD/USD slip to the low of the range. The dip was bought though as AUD buys in the crosses ensued. EUR/AUD’s break below 1.4430 support towards 1.4365 and AUD/JPY rally above 94.50 aided to push AUD/USD to the day’s high of 0.8816. Risk soured in NY’s afternoon as stocks turned heavy. JPY caught a bid and AUD/JPY slid towards 94.00. AUD/USD was dragged lower. Late in the day AUD/USD sat just below 0.8785. A speech by the RBA’s Stevens, NAB Q3 Business Confidence and China’s Oct HSBC mfg PMI are the risks for the Asia session. Stevens is likely to harp on AUD strength so he’ll likely have little impact. IF the data points are soft AUD/USD likely slides lower and a test of s-t support near 0.8735 might ensue.