USD Trading Outlook (27-11-2014)

AUD/USD The pair was quiet to start Europe’s morning but it quickly came to life. Stops in AUD/NZD were tripped on the 1.0900 break and a large US name spiked EUR/AUD higher from the 1.4570 area up near 1.4700. This combination saw AUD/USD dive from the 0.8560 area down to 0.8480. Profit taking bids halted the slide and a softer USD then saw the pair lift a bit. NY walked in with the pair near 0.8505. Short covering remained the theme in NY as a steady ascent persisted. The rise saw the pair reach near 0.8555/60 which was the level before the AUD/NZD break. JPY weakness then saw AUD/JPY lift towards 100.70. this kept AUD/USD closer to the NY high late in the day. Aussie Q3 CAPEX is the main risk in Asia. The Reuters poll suggests a drop from Q2’s result is due. A below f/c reading likely sees AUD/USD sink and retest today’s low.