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"The initial response to sell the Australian dollar modestly seems reasonable, if for no other reason than it is now more likely that Governor Stevens will elaborate on his long-term Australian dollar outlook at Friday's testimony to the parliamentary economics committee."
- Westpac (based on The Sydney Morning Herald)
Pair's Outlook
Pair continued to demonstrate bullish bias and seems to be consolidating above 89 cent mark. It might be that 90 cent threshold will be challenged soon as well, but we don't expect the pair to establish itself there from the first try. We should see it being capped by 89 and 90 cents for some time and, if nothing fundamental changes, to demonstrate at least minor bullish bias afterwards.
Traders' Sentiment
Bulls strengthened their presence in the market further. At the moment they hold 65%, 1% more than yesterday, of open positions. Besides that, bullish side of open positions expanded by 8-15%, till 31% overall, depending on the range.
© Dukascopy Bank SA