USD Trading Outlook (04-03-2015)

AUD/USD NY erased Europe’s post-RBA profit taking slide. Upon the open NY lifted the pair off the 0.7800 region as falling US yields brought on broad based USD weakness. The lift managed to match the post-RBA spike high. No further gains were possible though. Offers in the 0.7850/60 zone loomed and an afternoon rebound prevented further gain. The upcoming Oz Q4 GDP risk also likely helped keep the rally in check. Late in the day the pair sat near 0.7830 which left it with impressive gains and the best performing currency vs. the USD. The AiG PSI is another data risk ahead of GDP. Should both result come in above f/c we might see shorts squeezed further. We might then see the Feb 26 high and bear flag top near 0.7614/18 get tested.