USD Trading Outlook (31-05-2013)

It was a mixed bag for the AUD/USD overnight, making strong gains initially against the USD during Asian trade but giving much of the gains back when solid technical resistance at .9700 held firm. There was also plenty of volatility on the crosses and the overall bearish short-term trend remains intact. The USD seems to be entering a short-term bearish phase so we may see the AUD hold up against the greenback but I’m not so sure about the other majors.

The catalyst for the weaker USD was weaker than expected jobs and GDP data from the US. Today’s calendar shows a raft of data out of Japan, which is usually ignored, and only minor private sector data from Australia.