USD Trading Outlook (05-11-2014)

AUD/USD Europe & NY consolidated the pair after Asia initiated short covering once the test of 0.8640 failed to break lower. The pair lingered in basically a 0.8710/50 range as the mixed econ signals from Oz and benign RBA gave no catalyst to drive the pair majorly in either direction. There is some risk of a bigger short squeeze for now. Daily and weekly RSIs haven’t confirmed recent lows and today’s candle shows bulls are putting up a good fight near key support. With more big data risks due traders may feel it wise to cover some shorts. Global services PMIs are released tomorrow and we get numerous Fed speakers as well. Thursday give the Oz October jobs and then Friday sees the big US NFP report. Bears will need a big upside surprise to the NFP to get the longer-term downtrend going again