USD Trading Outlook (10-12-2014)

AUD/USD Europe ignored the soft NAB data and instead focused on USD weakness. They rallied AUD/USD from the 0.8232 area towards 0.8285 as NY got going. NY applied bull pressure as US bond yields saw a nice slip to drive USD/JPY off a cliff. AUD/USD lifted right out of the gate in NY, ran stops above the 0.8310/25 resistance area and hit a 0.8371 high. The USD and US bond yields staged a comeback after Europe’s close though. This saw AUD/USD give back most of NY’s gains as the pair sat just below 0.8310 late in the day. Traders will now focus on Westpac Dec consumer confidence and China CPI data for Nov. Soft results should remind traders that the global econ is shaky and see risk turn heavy. AUD/USD might then give up more of today’s gains and take another look at the new trend low before the Oz jobs data hits.