USD Trading Outlook (11-03-2015)

AUD/USD Bear momentum in Asia carried over in Europe. AUD/USD set a new trend low of 0.7603 on the soft Oz NAB readings and broad based USD strength. A slight bounce had the pair near 0.7635 into NY’s open. The pair spiked above 0.7680 as USD/JPY collapsed from above 122.00 to sub-121.00 levels. AUD/USD’s gains didn’t last long though as general risk-off sentiment ensued. Weak stocks and bond yields combined with JPY strength to drive AUD/JPY below 92.30. This dragged AUD/USD from NY’s high towards 0.7610. Little bounce was seen as the pair sat near 0.7620 late in the day. Traders have March Westpac consumer sentiment data (prior 8.0%) and a speech from RBA Assistant Governor Kent to contend with later. A weak data print should weigh on AUD. If Kent should discuss AUD it’ll likely get hit as Kent will likely try to jawbone the currency lower. s it stands now bears have control. The pair broke below the bear flag bas and the February low. Longer-term bears now target the 0.7250 area which sits near the May 2009 low