USD Trading Outlook (12-03-2015)

AUD/USD The slide in Asia didn’t progress much in Europe. The pair held above 0.7600 for most of Europe’s morning as EUR’s collapse drove EUR/AUD below 1.3900 and prevent AUD/USD from sliding. NY walked in with AUD/USD near 0.7610 and the pair lifted above 0.7630 as the USD wabs soft early on. The gains were erased though as the USD recovered a bit and EUR’s slide stalled slightly. This saw AUD/USD bears that were looking to sell a rally come to market and drive the pair to a new trend low of 0.7561. Some profit taking in the afternoon saw the pair near 0.7580 late in the day. Traders now look to Oz March consumer inflation expectations and the Feb jobs report. Should both data points give soft results the market will up the chances of the RBA cutting soon. AUD/USD will come under pressure and bring the pair closer to key support in the 0.7180/0.7240 zone.