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"A solid report overall [on retail sales], it reinforces the notion that [Fed] tapering in September should be appropriate."
- TD Securities (based on Reuters)
Pair's Outlook
Guided by the 55-day SMA, AUD/USD is grinding lower, but at the moment is struggling with the monthly PP at 0.9064 which is still intact. Eventually, this support, formed by the weekly PP and 20-day SMA as well, is supposed to open a path towards 0.87, the target for the price in the medium term, as evidenced by the technical indicators on daily and weekly time-frames.
Traders' Sentiment
Among the G10 currencies, the Australian is by far the most popular currency, followed by the U.S. Dollar. Respectively, there is a significant gap between the long and short positions opened on AUD in favour of the former, they take up as much as 70% of the market.
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