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"First, markets were already discounting coming cuts by the RBA so the surprise on the unemployment rate is only of magnitude as opposed to substance. Second, the rise in the unemployment rate comes down to a rising participation rate following the dip in August."
- Westpac (based on The Australian)Pair's Outlook
Bullish impetus is pushing the pair further as it is trying to breach the 200-bar SMA at 1.0297 at the moment. However, it seems that pair is on the verge of a bearish dip as technical indicators send stronger sell signals and the currency pair is approaching a cluster of resistance levels situated at 1.0321/338.
Traders' Sentiment
SWFX sentiment on the pair remains strongly bullish, but dropped below a 70% mark for the first time in a week's (67% at the moment). In addition, 67% of pending order are to sell, suggesting a possible major shift in market sentiment in the future.
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