© Dukascopy Bank SA
"I think the governor accepts the need for further stimulus in the Australian economy but he is focused on providing that stimulus through a weaker Australian dollar rather than lower rates, and I think that came out [on Wednesday]."
- Westpac (based on The Sydney Morning Herald)
Pair's Outlook
Monthly R1 failed to provide strong enough support for the pair to hold it as aussie-greenback cross continues to trail lower. It should face, however, much more difficulties when testing the 2013 low around 0.885. We expect to see some bullishness there, but unlikely to witness any major moves upward. In order to ignite a rally the pair should advance above the 90 cent mark which seems hardly possible at the moment.
Traders' Sentiment
Market sentiment became noticeably more bearish since yesterday. Short side of pending orders increased by 5% and is at 74% today. In addition to this, share of bears in the market increased by 4% since yesterday. However, they account just for 29% of all of the market participants.
© Dukascopy Bank SA