USD Trading Outlook (05-03-2015)

AUD/USD Early NY saw gains in Europe added to. The ADP miss put the USD off balance at first as yields softened. AUD/USD ran stops above 0.7850 but could only manage a new high of 0.7860. USD strength, lead by EUR/USD sales, quickly emerged. AUD/USD slid from the high. The drop got a boost from a report in ‘The Australian’ noting that Rio Tinto will be might cut 1,000 jobs. http://bit.ly/1GTxEM3 AUD/USD dived towards the post-Oz GDP low but could only touch 0.7803. Very little bounce was seen though as AUD/NZD traded to a new trend low of 1.0296. AUD/USD sat just below 0.7815 late in the day. Oz retail sales and trade data for January are the key risks in Asia. Soft reading might see the recent short squeeze run out of steam. We might then see key support near 0.7720/40 tested.