USD Trading Outlook (26-03-2015)

AUD/USD The pair held below 0.7900 in Europe’s morning and was unable to benefit from general USD weakness as upped concerns of an RBA cut and AUD/NZD’s slide towards 1.0275 weighed. NY walked in with the pair near 0.7890. The weak durable goods data weighed further on the USD. AUD/USD finally caught a bid and traded to 0.7905. The gains were fleeting though as the USD recovered on a rally for US bond yields. AUD/USD slipped lower, cleared Asia’s low & hit 0.7829. There was little bounce for the pair as the USD stayed firm in the afternoon. Late in NY the pair sat just above 0.7840. No major data is due from the APAC region. Action might be limited as the market awaits weekly US jobs data for their cues. Recent longs might have some concerns as the March 24 doji sees downside follow through today and daily RSI rolls over from near o/b territory. A dip might be due but the 10-DMA will cross above the 21-DMA soon and is likely to generate buy signals from the model community. The recent rally may still have legs.