USD Trading Outlook (18-03-2015)

AUD/USD A rally in Europe’s morning stalled shy of the March 16 high and 200-HMA. The pair slipped from the 0.7666 high & sat near 0.7650 into NY’s open. NY applied bear pressure right out of the gate even as housing data was soft. A broad based USD bid drove the pair steadily lower in NY’s session. The March 13 low was pierced but follow through was limited as a low of 0.7606 printed. A give back for some of the USD’s gains allowed a late day bounce and the pair sat just below 0.7630 into the close. Activity in Asia & Europe is likely to be limited as the market awaits the Feds decision. If the word ‘patient’ is removed the USD likely rallies. AUD/USD might then try to break the 2015 low. Should that occur the door to sub-0.7200 levels is opened.