USD Trading Outlook (20-06-2014)

AUD/USD Europe spiked the pair up and added to June 18 gains as US yields were slipping. AUD/USD ran up to 0.9432 before pulling back to 0.9415 into NY’s open. Asian offers into 0.9440 aided to cap the rally. Early action in NY saw a tight range but the pair began to slide as US yields reversed some early losses and US stock markets swooned. A low of 0.9390 was hit but the pair sat just above 0.9400 late in the day as stock recovered a bit and yields pulled back from their highs. Bullish enthusiasm post-FOMC has been tempered today. The June 18 bullish engulfing candle saw only limited upside follow through today. Narrower yield spreads and ongoing concerns about Iraq seem to have dulled some of the shine post-FOMC. Some stops sit above 0.9440 but larger are touted above April’s high. If bears can’t assert themselves soon those stops are sure to attract.