USD Trading Outlook (20-11-2014)

AUD/USD Bear pressure remained on AUD for Europe & NY. Rotations out of EUR shorts and into longs vs. AUD, NZD, CAD & JPY combined with another heavy day for iron ore to keep AUD/USD weighed down. Europe pushed the pair below 0.8430 as NY got going. NY saw an early lift as housing data was on the soft side. The pair lifted towards 0.8655 but ran out of gas. Persistent USD strength and a rebound in US bond yields saw the pair near 0.8610 before action settled near 0.8625 into the Fed minutes. The market’s initial reaction the minutes was deemed dovish as the USD got hit hard. AUD/USD spiked up to 0.8658 but the move quickly reversed. All the gains were given back and a new low was set as the pair begins working through bids in the 0.8605/0.8590 region. The Nov 11 low is the last bit of support before the 2014 low comes into play. Stops are noted below 0.8590 and may get run as day/week RSIs are biased down and spreads narrow. A break of the 2014 low opens the door to the May 2010 low near 0.8066.