USD Trading Outlook (23-08-2013)

Emerging markets finally settled down last night but not before the Indian Rupee and the Turkish Lira made new lows against the USD. The AUD/USD managed also to stabilise around the .9000 mark, mainly due to heavy AUD/JPY buying by Japanese retail players. If the panic selling in EMs calms down, then we should see the AUD/USD start to recover some lost ground. If the taper-inspired flight out of EMs continues, then the AUD/USD will soon be testing .8850. Traders will be watching the newswires carefully for any comments from the Jackson Hole Symposium but with most of the big central bank leaders missing, it’s unlikely to be too controversial.