USD Trading Outlook (28-08-2014)

AUD/USD Commodity currencies were well bid in Europe’s session and AUD/USD added to gains made during Asia’s session. The pair managed to work into structural resistance and sat near 0.9340 into NY’s open. US bond yields were soft in early NY and the pair’s rally pushed further. Some stops were run through 0.9345 and a high of 0.9352 was made. Offers touted in the 0.9350/75 zone (daily cloud base, 55-DMA, Aug 6 high) capped gains and a broad recovery for the USD saw the pair slip just below 0.9330. Buyers were waiting though and the pair lifted back near 0.9340 late in the day. With little data due until the US jobless claims and GDP reports and global bond yields soft the AUD/USD may push higher still overnight. Daily & weekly RSI provide positive momentum and could aid further gains. A break above 0.9375/0.9400 may see bears throw in the towel and we may see the July high back in play