The story of the trading session was again the USD. After a number of sessions where we saw some weakness in the Greenback the bounce that we were all waiting for finally came.

That clearly put the pressure back on the other major currencies which felt the heat. There was none under more pressure than the AUD, who has been gripped by political turmoil.

The leadership crisis has seen the AUD/USD tumble to 0.7250, with 0.7200 in sight. We are all expecting a new PM to be named today, so the Aussie might well be in for some more volatility.

Elsewhere US equities were slightly lower, with commodities not moving too much although they were lower given the USD strength.

Jackson Hole kicks off today and we have FED boss Jerome Powell speaking so there will be many interested watchers, given the hawkish tone of what keeps on coming out of the FED.

Yesterday we said that the USD was due to a bounce off the trend line around the 95.00. And sure enough, that is where the buying came from. With that said, price has fallen back further than I anticipated it would and this was the last really clear support level that we could lean on with a bullish outlook.

The next upside target is now the support turned resistance at 96.20, which has been strong in the past.

There looks to be a bit of work to do after the news headlines really ground the USD down. But things can turn quickly in this game. Especially on a retrace.