USD Trading Outlook (12-01-2015)

AUD/USD the 200-HMA turned into support overnight as Europe bought the dip down to the average. The pair rallied & sat just above 0.8140 into NY’s open and into the jobs report. Whippy price action ensued post-data release but bulls eventually reigned as the market focused on the miss to average hourly earnings. this saw US yields and the USD sink. AUD/USD spiked higher. The lift got a boost from AUD/NZD breaking above 1.0435/40 resistance and a well followed US bank’s tech team establishing a long AUD/USD position. The pair pierced 0.8200 and little pullback was seen as the pair held near the session’s high late in the day. Key s-t resistance in the 0.8215/20 area is now under threat and may break soon. RSIs are now biased up and yield spreads have begun widening. A break of that zone likely sees more short covering and the ensuing squeeze could potentially reach 0.8375/0.8400 resistance.