USD Trading Outlook (07-04-2015)

AUD/USD opened Noram marts 1.2480, – 16 pips vs Friday’s close, O/N range 1.2453/91, AUD/CAD 0.9527, +0.28%; DXY +0.11%. It was an inside day after Friday’s NFP fireworks (NY range 1.2430/1.2574) and we jobbed 1.2438/83, the Loonie tracking oil higher initially. Oil futures opened firm, Brent +2.31%, WTI +2.28% and have continued with gains (+5.75% & 6.1% respectively) but the commodity bloc dislocated from oil (and gold) USD/CAD closing around 1.2465/70, regaining lost ground vs NOK and ZAR which had rallied hard in the AM along with EM currencies. EUR/USD dropped almost 60 pips from its highs and the ccys tracked that pair, rather than the fundamentals. There’s some nervousness ahead of the RBA meeting tonight which dragged AUD lower.