USD Trading Outlook (08-09-2014)

AUD/USD Europe bought a dip from Asia’s high. Buyers emerged at s-t support near 0.9330 and they lifted the pair to have it near 0.9345 into NY’s open. NY pushed the lift further after the ECB cut rates. EUR/AUD dived from above 1.4060 to sub-1.3950 levels. Draghi’s presser added more pressure to the cross and sub-1.3850 levels were hit. This price action saw AUD/USD driven up to a new high of 0.9393. EUR/AUD’s slide pressed a bit further and neared 1.3802 with it eventually settling near 1.3835. AUD/USD was unable to benefit though as above f/c US non-Mfg ISM rallied US bond yields and the USD. A steady drift lower took hold and most of NY’s gains were erased as 0.9343 was hit. Little bounce was seen as US equity mkts turned heavy. AUD/USD sat below the 55-DMA and daily cloud base and near 0.9350 late in the day. The US jobs report is now the main focus. The NFP and unemployment rate are expected to improve. Should they beat substantially AUD/USD is likely to trade heavy and today’s 0.9393 high may denote a short-term high for the pair.