USD Trading Outlook (02-06-2015)

USDJPY hit a fresh 12 year high early this morning during the Asia session as the pair briefly broke 125 before profit taking and position adjustments softened the pair back to 124.80.

This came on the back of better than expected US manufacturing data on Monday when PMI came in at 52.8 versus 51.9 expected which signaled dollar strength against most major currencies.

AUDUSD recovered strongly gaining almost 100 pips following its 6 week low on the back of yesterday’s US data as the RBA cash rate remains unchanged at 2.00%.

Greece stills looms large in the EU as the EURUSD shows no signs of breaking its 100 pip range of the last week or so as investors wait to see if Greece can meet its repayment obligations as heads of the IMF and ECB joined talks yesterday as the cash-strapped country battles with its creditors to unlock desperately-needed bailout funds.

Today we have German unemployment rate at 07.55GMT followed construction PMI from the UK at 08.30GMT.

Trading quote of the day: “The goal of a successful trader is to make the best trades. Money is secondary.” – Alexander Elder