USD Trading Outlook (06-03-2015)

AUD/USD The pair gave back the post-Lowe comments gains but held above the post-Oz GDP low in Europe as AUD/NZD’s rally negated USD strength. The pair sat near 0.7810 as NY got going. The USD’s rally turned out to be too powerful to ignore in NY. The broad based rally saw AUD/USD finally give in and stops through 0.7790/95 were run. There was no looking back for the pair and the slide approached key support near 0.7740/50. Little bounce was seen and the pair lingered near the day’s low late in the session. The pair may get some impact from the AiG Feb PCI but it’s likely to be limited as the market awaits the US jobs data. A solid jobs report should see 0.7740 break and stops run. Bears then set their sights on the bear flag base followed by the 2015 low.