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- ANZ Bank New Zealand (based on The New Zealand Herald)
Pair's Outlook
On Wednesday the AUD/USD currency pair slumped slightly less than 100 pips, with the 0.74 major level managing to limit the losses. The Aussie remains under pressure, with the 0.74 major level no longer providing sufficient support. As a result, the commodity currency risks falling towards 0.7340, the area where the weekly S2, the weekly S3 and the lower Bollinger band form relatively strong demand. Even though technical indicators in the daily timeframe retain mixed signals, the longer period ones remain bearish.
Traders' Sentiment
Market sentiment also remains bearish, with 57% of traders now holding short positions, opposed to 67% on Wednesday. Moreover, three quarters (75%) of all pending orders are now to sell the Australian Dollar, up from 35% yesterday.
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