AUD/USD rebounds from 55-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Near-term chances of a rate cut are very slim. I think the Reserve Bank has been looking for a few things -- one of them has been whether the household sector has been recovering and on this evidence they clearly are."
- Stephen Walters, JPMorgan (based on The CNBC)

Pair's Outlook

A recent pullback has been stopped by a confluence of several support levels, namely the monthly pivot point, 55-day SMA and Bollinger band. The currency pair has already reached the 200-day SMA and seems to be willing to advance even further, up to 1.0398/97, where the 100-day SMA lies, although technical studies are either silent or even giving ‘sell' signals.

Traders' Sentiment
Extensively bearish traders' sentiment towards the Aussie persists. Only one positions on AUD/USD out of four is long, since the U.S. Dollar is among the most popular currencies, bought in 59% of trades. In the meantime, 57% of orders are to buy AUD and 43% are to sell it against the buck.
© Dukascopy Bank SA

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