USD Trading Outlook (10-02-2015)

AUD/USD Short covering in Europe saw the 200-HMA cleared and the pair sit near 0.7810 as NY got going. Early NY saw a tight range but the short squeeze took control again. With USD bulls taking a rest after the US jobs report there was no real reason to push AUD/USD lower. Real money names were noted short covering culprits. The pair tested 0.7835/40 resistance and made a 0.7836 high. The afternoon saw the pair slip a bit as it held close to 0.7820 for the remainder of the session. Traders will look to Oz Q4 house prices and NAB’s business conditions & confidence indictors. Should the housing data come in above f/c AUD might get a further boost as the RBA still has noted their concerns on home prices. Should the short covering intensify and Friday’s high break it’s likely a bigger squeeze is due. We might then see a test of key resistance in the 0.8025/55 zone heading into OZ jobs later this week.