USD Trading Outlook (21-11-2014)

AUD/USD The below f/c China PMI wasn’t enough to inspire bears to seriously test the 2014 low. A bounce off the 0.8565 area ensued in Europe as the USD began seriously slipping after USD/JPY couldn’t break 119.00. AUD/USD climbed and sat near 0.8615 as NY got going. With US CPI above f/c and jobless claims better than f/c AUD/USD dipped in early NY. Buyers emerged in the 0.8590 area and a steady ascent took hold as the USD couldn’t mount any meaningful bounce in NY. AUD/USD hit a 0.8641 high in NY but saw only a small pullback as it sat just above 0.8630 late in the day. The pair may squeeze higher in Asia as there is little data and the market may focus on the technical picture. A bullish hammer candle formed today and RSI turns from near oversold territory. If today’s USD slide persists overnight we might see AUD/USD test the 0.8720 area as recent shorts might cover.