USD Trading Outlook (21-08-2014)

AUD/USD Sounding like a broken record, but the sideways churn continues. The NorAm session was a mirror image of the previous day, this time with AUDUSD briefly washing out the bottom of the recent range below .9290 before recovering back above .9300 fig. The Fed minutes read more hawkish than the rate markets were pricing the past week, but the tone is tempered by a general state of macro malaise (especially in Europe) since the meeting on July 29-30. The US-AUD rate diff dynamic remains relatively steady. AUD ended the day under some pressure but the pair continues to be trapped by conflicting forces of a broad USD rally and a snappy stock/spread product up-move. Tactical, not strategic, trading remains the best bet for now.