USD Trading Outlook (24-10-2014)

AUD/USD The pair rallied in Europe as EUR/AUD sales from model accounts gave AUD a bid. AUD/USD rallied near 0.8800 before pulling back towards 0.8780 into NY’s open. Early NY saw risk get a solid boost of Caterpillar’s earning beat and upped forward guidance. AUD/USD followed risk higher and hit a 0.8807 high. The gains faded quickly though as US bond yields and the USD went bid after the US econ data. AUD/USD steadily slid lower, pierced the 200-HMA and hit a NY low of 0.8752. Very little bounce was seen and the pair sat near the low late in the day. There is no major data from Oz until next week so price action for AUD/USD is likely dictated to by the crosses and external factors. NZ September trade data is the risk Asian traders will look at as it may have some impact on AUD/NZD.