USD Trading Outlook (08-08-2014)

AUD/USD could hardly get off the mat during European and NY hours after the disappointing jobs report. The pair drifted slightly higher from the day’s 0.9259 low during Europe’s morning and eventually hit 0.9283 heading into NY’s afternoon. The pair slide from NY’s high and sat near 0.9270 late in the day. The rise was aided by soft US yields and EUR/AUD’s drop from above 1.4440 towards 1.4380 after ECB’s Draghi tried to talk down EUR. The fact that AUD/USD couldn’t garner further gains is a bad signs for longs. Poor price action like that suggests bears may not let the pair come up for aid while having their sights on key support near 0.9180/0.9200. Tonight’s RBA SOMP may help bears in their cause. Recent AU data has been less than stellar. The report may highlight downside risks to the econ and see the RBA lean towards a dovish stance instead of their current neutral rate path. A dovish statement likely sees AUD/USD test that support down below. If it happens to break bears then turn their attention to supports near 0.9050 and 0.8890/00