USD Trading Outlook (24-03-2015)

AUD/USD Early Europe saw AUD/USD smash much of the gains made in Asia. The pair dived from the 0.7840 area and down to 0.7764 before lifting to the 0.7800 area into NY’s open. The USD was soft for most of NY trade and this had AUD/USD firm for most of the session. Short covering and a widening of yield spreads was the original impetus for the pair’s rise. AUD/NZD’s bounce towards 1.0305 added momentum to the pair’s lift. The lift from NY’s open saw very little dips and eventually ran stops above the 0.7860/65 zone. The lift accelerated and a high of 0.7884 was hit. Only a small pullback was seen late in the day and the pair sat near 0.7875 into the close. No big Oz data is due so traders are likely to take cues from China’s March HSBC Mfg PMI. A robust reading should spur more AUD buys. The could see AUD/USD squeeze up to the 0.7914 high of Feb 26. IF that high breaks the door to the 0.8025/55 zone opens wider.