USD Trading Outlook (22-01-2015)

AUD/USD The pair lifted in early NY and nearly matched Europe’s 0.8234 high as the USD was broadly offered. The gains were quickly erased though as AUD was sold off in sympathy with CAD after the surprise BoC rate cut. Market sentiment seemed to be that the RBA will have increased pressure to cut on Feb 3. AUD/USD dived and cleared the 21-DMA and January 15 low. Bear pressure increased as the USD rallied against most major currencies due to US bond yields rallying. AUD/USD went on to make a low of 0.8077. Little bounce was seen and the pair sat near 0.8095 late in the day. Bear sentiment is upped now that the pair has taken out some key s-t levels and techs. The Jan 14 low is the next hurdle for bears to overcome before another assault on the 0.8000/30 area is made.