USD Trading Outlook (30-01-2015)

AUD/USD Europe applied bear pressure to the pair as the chances of RBA rate cuts were upped in the rates markets. Aiding to weigh on AUD/USD was EUR/AUD being well bid. The pair sat near 0.7800 as NY got going. Early action saw the pair consolidate losses but bears took control again when it became clear the pair couldn’t regain ground above 0.7800, EUR/AUD pressed on to the 1.4630 area and commodities got hit again. AUD/USD made a quick dive and took out bid into 0.775. A low of 0.7720 was hit. Bids into 0.7700 (barrier likely) and the abating of the USD’s rise saw a profit taking bounce ensue. Late in the day the pair sat just below 0.7760. No major Oz data is due so traders are likely to key on the EZ CPI and US GDP reports for the pair’s cues. Strong US GDP should see additional bear pressure applied to the pair and we might see 0.7700 (July 2009 low) break.