USD Trading Outlook (31-10-2014)

AUD/USD Europe lifted the pair after it failed to make headway below 0.8760. The profit taking rise had the pair near 0.8795 as NY got going. Early NY saw the pair spike down to 0.8759 on the headline GDP miss. No further losses were possible though after the market realized the GDP internals weren’t that impressive. Upon that realization US yields and the USD slipped from their highs. AUD/USD quickly recovered its footings and rallied back above the 200-HMA. A period of consolidation near that MA ensued and it eventually resolved higher. US equity markets and JPY was sold on talk of a Nikkei report on the GPIF reallocating investments. AUD/USD lifted to a 0.8841 high as AUD/JPY ran up near 96.65/70. Little pullback was seen for either pair and late in the day they both sat just below the session’s high. Aussie Q3 PPI, the BoJ meeting and EZ CPI are the main risks overnight. Technically it appears further gains can be made after the pair bounced off s-t trend line supt, is back above the 10 & 21-DMAs while RSIs are biased up.