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"We expect underlying inflation to remain within the RBA's target over the medium to longer term, with soft consumer spending, below-average labor cost pressures and a still-high Australian dollar keeping price pressures well contained."
- National Australia Bank (based on The Wall Street Journal)
Pair's Outlook
Weeks start was bearish, but rather stable. Today pair tried to recover some of the last weeks losses, but did not manage to advance above 1.03, where strong psychological level might be located, and has fallen be more that 60 pips since. As pair is pushing the lower limits of Bollinger band and approaching major levels around 1.02, we are likely to see bullish correction ignited by the weekly and monthly S1.
Traders' Sentiment
Bears continue to hold the overwhelming majority of open positions in the market. At the moment they hold 73% of all outstanding positions on the pair. It seems that situation should remain so for some time in the future as pending orders are almost equally divided between the bears and the bulls.
© Dukascopy Bank SA