USD Trading Outlook (03-03-2015)

AUD/USD A tight range held for the pair in Europe & NY. AUD/USD held close to the day’s lows and was unable to take back much of the post-China RRR cut losses. Bear signs are upped ahead of the RBA. A bearish outside candle formed, price is back below the 10 & 21-DMAs, daily RSI is biased down and yield spreads hold at recent tights. Traders await the RBA and chance of a cut are slightly above 50%. If no cut is made traders expect Stevens to at least initiate an easing bias. Should they cut and take an easy bias AUD bears will charge. The pair should easily take out key support near 0.7720/40 and make a run at the bear channel base and 2015 low.