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"The currency rallied and I think that had more of an impact on the sharemarket. There's certainly capacity for further rate cuts and I think while we're seeing an improvement in the economy, it's very incremental."
- CommSec (based on The Australian)
Pair's Outlook
Pair started day passively, but increased the pace later in the day after touching weekly PP at 1.0438 and breaching weekly R1 at 1.0475, level which was unreachable for the pair in the last few weeks. At the moment pair is close to advancing above and reaching the highest level in more than a month. However, gloomy readings from technical indicators allow us to believe that this rally might end at very first resistance level at 1.0514.
Traders' Sentiment
Bearish moods are holding firmly in the market as three of four market participants perceive aussie as the weaker currency in the pair. Slim, but majority of pending orders, 52% to be exact, are to go short as well.
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