USD Trading Outlook (08-12-2014)

AUD/USD The pair held a very tight range in Europe’s morning ahead of the US jobs data. 0.8361/87 defined the action and the pair sat just above 0.8370 into the jobs data. The solid data print sent the USD &US bond yields soaring. AUD/USD made a quick dive to 0.8320 before any type of bounce took hold. A lift towards 0.8345 met sellers and the pair steadily slid lower for the remainder of the session. The pair made a new trend low that matched the July 2010 low at 0.8315. Very little bounce was seen and the pair sat near 0.8325 late in the day. The upbeat jobs data increases the odds of Fed rate lift-off in Q1 which would bolster the view of diverging CB mon pol as talk of RBA cuts has been upped this week. With AUD/USD closing the week near critical support it seems only a matter of time before it breaks and the pair makes a run for the May 2010 low at 0.8066.