USD Trading Outlook (15-10-2014)

AUD/USD Europe erased Asia’s gains and had AUD/USD dip to 0.8718 before it bounced near 0.8740 into NY’s open. Early NY saw some USD weakness and risk sentiment shift up a bit. This allowed AUD/USD to rally but the lift stalled short of the 200-HMA as it could only reach 0.8754. The USD reversed course and aided a push back near 0.8720. The pair lingered near that level for most of NY’s afternoon but bears pushed harder. A hard hit to WTI, a give back for a good part of equity gains and JPY strength softened risk sentiment. AUD/USD & AUD/JPY traded lower. AUD/USD dipped towards 0.8700 while AUD/JPY dived from near 93.45 towards 93.05. Little bounce was seen and AUD/USD sat near 0.8705 late in the day while AUD/JPY sat just off its low. Trades now look to Westpac’s Oct consumer confidence data and China’s Sep CPI & PPI readings. Soft results for hose data points should have AUD trading heavy in Asia.