The rally on AUD/USD that has been seen since January can be running out of steam, as the pair struggles to move above the recent high at 0.9461 and the double top pattern can be completed soon. Additionally, technicals on a monthly chart are bearish, while 57% of all traders are selling the pair. Last week's budget was a disaster. As a result the recent polls showed support for the Oz government has plummeted. According to the Newspoll, the approvals rating for the Coalition has hit the lowest level since 2009. Another poll conducted by Fairfax and Nielsen indicated the party will lose around 44 of its 90 seats in case a 9.5% swing towards Labor was repeated on an election day. The resource-rich economy is now expected to move back to surplus only by the beginning of the next decade. The budget included more tax increases, drastic spending cuts as well as the introduction of a deficit levy on high-income earners. At the same time, Tony Abbott, who pledged to introduce reforms and restructure the economy, is losing his popularity among the population. Abbott has already dropped behind opposition party's leader Bill Shorten as preferred Prime Minister for the first time, with only 34% of population supporting the current Prime Minister, versus Shorten's 44%.
The end of the rally has also been seen in the options market, with derivatives that give the option to sell the Aussie against the U.S. counterpart hitting 66%.
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