USD Trading Outlook (10-03-2015)

AUD/USD Hourly resistance in the 0.7740/45 area stalled two short covering rallies that occurred in European and NY trading. NY’s lift barely made it to 0.7740 as broad based USD strength was the theme for the session. The pair got a bit more weight added to it a Terry McCrann article in the herald Sun http://bit.ly/1KLNKgi noted that the Fed will be a bigger factor in AUD/USD’s direction that the RBA. This had the pair sit neared the lower end of its 0.7706/40 range heading into the close. the Asian session has NAB’s Feb business conditions and confidence data as well as China’s Feb CPI 7 PPI readings. Soft results for both data sets could see AUD/USD break below the bear flag base and make a run at the 2015 low.