© Dukascopy Bank SA
"Even a cursory glance at the evidence suggests a strong and consistent relationship between the Australian dollar-U.S. dollar pair and the performance of the U.S. equity market, in turn a reliable proxy for the wider risk-on/risk-off phenomenon."
- HSBC (based on MarketWatch)
Pair's Outlook
Early in the session pair tried to recover some of its losses, but dropped by almost 30 pips after receiving a bearish impetus from 1.05. It seems that this dip, coming mostly from weekly technicals, will last some time more, but either 1.045 or 1.0417 should become those levels which should kick the pair in higher gear as in these levels (depending when reached) pair should become oversold.
Traders' Sentiment
Bearish perception of the pairs future are remaining strong as 70% of traders continue holding selling aussie against the greenback. It does not seem we should see any major twists either as pending orders are almost equally divided between the bears and bulls.
© Dukascopy Bank SA