USD Trading Outlook (26-09-2014)

AUD/USD Europe bounced AUD/USD off the 0.8790 area and had the pair just below 0.8820 into NY’s open. Early NY saw bear pressure applied again as better than f/c jobless claims gave the USD a bid. The pair broke Europe’s low but rebounded quickly as USD/JPY dived from 109.30 towards 108.50. The lift touched 0.8826 but sellers were sitting there. The slide began again as risk sentiment soured. Equity and commodity markets traded heavy for the NY session and aided AUD/USD to a new trend low of 0.8774. Only a small bounce was seen in the afternoon and the pair sat near 0.8785 late in the day. Bears have a lot of momentum on their side as day/week RSIs and narrower yield spreads weigh again. Decent support sits at the daily lows of Feb 3 & 4 at 0.8730 but that level may only temporarily slow the slide. Bears are intent on taking AUD/USD to the 2014 low at 0.8660.