USD Trading Outlook (20-03-2015)

AUD/USD The pair was driven down to the 200-HMA in Europe’s morning before bouncing towards 0.7710 into NY’s open. Bears took control in early NY as the USD continued to claw back post-FOMC losses and talk that the RBA may now act on their own was upped. AUD/USD slid from the open, pierced the 200-HMA and threatened support in the 0.7610 area. The pair remained heavy as pressure was applied from AUD/NZD’s slide towards 1.0310/15. Late in the day AUD/USD sat just above 0.7615. Action in Asia may remain limited as the market continues to digest the latest moves. There might be some action though as RBA’s Stevens speak in Melbourne. If the AUD comes up in the topic it’s likely Stevens will try to jawbone it lower. He may also note the potential for a rate cut after the latest RBA minutes suggested the bank is open to further cuts. AUD/USD is likely to trade soft on that type of rhetoric.