USD Trading Outlook (12-09-2014)

AUD/USD Europe managed to erase all the post-Oz jobs gains as traders focus more on the soft China and the underlying USD bid due to fears of a more hawkish Fed coming down the pike. Bears pushed the pair towards 0.9120 into NY’s open. NY saw an early dip below 0.9110 rebuffed as weekly jobless claims come in above expectations. The USD softened a bit and AUD/USD rallied near 0.9140. The USD regained its footings though and AUD/USD began sliding again. Leveraged and system names out of NY were steady seller and too on importer bids into 0.9100. The bids held for a while but eventually broke and the pair hit 0.9096. A profit taking bounce into Europe’s close saw the pair near 0.9120 but sellers took hold again and the pair went on to make a new low of 0.9093. The pair sat just above 0.9100 late in the session to keep touted 0.9090 and 0.9070 stops in play for the Asian session. If pressure persists support comes in near the 50% Fib of 0.8660-0.9505 which sits 0.9083 and then further support sits near 0.9050 where option related bids are touted.