USD Trading Outlook (19-11-2014)

AUD/USD Europe erased all of Asia’s gains after the RBA’s Steven’s warned AUD investors they underestimate the risks of an AUD decline. A quick spike lower halted at the 200-HMA which sat 0.8682 at the time. A quick rebound saw the pair back near 0.8710 after the USD softened in early NY. The pair then saw a steady ascent. The lift got an added boost from a spike up in AUD/NZD after a weak Fonterra milk auction. The lift eventually hit a NY high of 0.8735 and the pair sat just below that level late in the day. Westpac Oct Leading index and the BoJ are the main risks overnight but traders might looks to commodities for cues. Iron ore and rebar have hit new trend lows are could have AUD bulls on edge. An acceleration to the downside for those commodities is likely to keep any future AUD/USD enthusiasm tempered.