USD Trading Outlook (15-01-2015)

AUD/USD short covering was the there for Europe & NY. Once AUD/JPY’s slide abated Europe lifted AUD/USD off the 0.8065/70 area and had it at the 200-HMA into NY’s open. NY kept the squeeze going after retail sales was well below estimates. AUD/USD spiked up to 0.8180. The lift was aided by JPY weakness that allowed AUD/JPY to recover losses and near the 95.55/60 area, AUD/USD did slip late in NY as USD strength emerged. The pair sat near 0.8140 late in the day. Traders new look to the Dec Oz jobs report later. The employment data is forecast to deteriorate. A reading below estimates should increase thoughts an RBA cut is due. AUD/USD should then trade heave and we may see a retest of the 2015 low in the near future.