USD Trading Outlook (04-12-2014)

AUD/USD The pair spent Europe’s morning lifting off Asia’s low. The move saw the pair rally from near 0.8390 towards 0.8420 into NY’s open. EUR/AUD’s break below 1.4700 and subsequent drop near 1.4605/10 aided AUD/USD’s rise. NY added to the gains early on after ADP missed estimates and labor costs were a bit soft. A quick lift to 0.8447 ensued. Bears emerged though after USD/JPY bounced off hourly support near 119.20 and US bond yields added to recent gains. The pair then steadily descended for the remainder of NY and sat just above 0.8400 late in the day. Trader now look to Oz Oct retail sales & trade data for AUD cues. Below forecasts results will be more fodder for AUD bears after the GDP miss. AUD/USD likely would trade heavy again and make a run for key support near 0.8315.