USD Trading Outlook (26-08-2014)

AUD/USD Europe saw an opportunity to sell AUD/USD after AUD/NZD put in an impressive rally overnight. They sold the pair from the 0.9324 high ad had it near 0.9315 as NY got going. NY maintained pressure as the USD firmed up in early NY after bond yields recovered some losses. AUD/USD cleared the 200-Hour MA and then matched Asia’s 0.9289 low. Little bounce was seen and the pair sat near 0.9295 late in the day to leave it off 0.20% for the day. Action may be limited in the overnight session as there is little data or event risk scheduled. Traders will look to US July durable goods orders and August consumer confidence data for their next cues. From a technical point of view it appears downside risks remain. Structural resistance near 0.9330/40 is formidable, the T-L off the April 2013 high is nearby and day/week RSIs have a bearish bias. If US data leads to further USD gains, the May low and 200-DMA should come into focus.