USD Trading Outlook (10-09-2014)

AUD/USD opened on Tuesday at 0.9283 and traded a moderate 0.9253-88 range in Asia; last at 0.9264. AUD/USD after falling 1.0% on Monday and closing in NY just off its low continued to struggle in Asia. AUD/USD saw some light exporter buying interest during the morning session before softer than previous NAB Business Confidence data pushed the pair to a session low of 0.9373. That low proved short lived once USD/JPY burst through 106.25. AUD/USD followed in kind making a fresh intraday low of 0.9253 after light stops were tripped below 0.9260. The bounce so far has been anemic so look for a test of key support around 0.9230/40 during the London session. There were plenty of reasons put forward this morning to substantiate the overnight moves but it seems more simply a continuation of broad based US Dollar strength. AUD/USD played catch-up after being left reasonably unscathed last week. The leveraged and real money crowd had the last laugh overnight denting the AUD’s seemingly ‘Teflon” coating. AUD is now also under pressure on the crosses with EUR, GBP and NZD set to regain some lost ground.