USD Trading Outlook (14-01-2015)

AUD/USD The NY session saw the pair hold a relatively tight range above the 200-HMA. The pair was basically directionless between 0.8130 and 0.8170 as it was buffeted by a falling AUD/JPY and USD/JPY. The upcoming Oz jobs report on Jan 15 (Oz time) is another likely factor keeping AUD traders from being overly aggressive. The pair is likely to remain in tight ranges until that data point comes out unless there is major external factor to drive it in either direction. As it stands now the pair is being supported by the 10 & 21-DMAs and RSIs are biased up while yield spreads widen a bit. The risk for a squeeze exists. If the Oz jobs data is very upbeat we may get that squeeze and see the pair test key resistance near 0.8370/0.8400.