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"In the short-term, Australian shares and the Australian dollar will continue to be buffeted by developments around the Fed and China, but a reinvigorated reform agenda and less accidents out of Canberra will help."
- AMP Capital (based on Bloomberg)
Pair's Outlook
So far today AUD/USD has been bullish—the currency pair has already negated yesterday's losses. The outlook, however, is bearish, as the exchange rate is currently fluctuating near the upper boundary of the channel, which is unlikely to be broken in the nearest future. The price may spike up to 0.7250, but we still will hold a negative bias, since there are the monthly PP and 55-day SMA backing up the trend-line.
Traders' Sentiment
Bulls further enhanced their advantage over bears. At the moment of writing three out of four open positions are long. The gap between the buy and sell orders remains relatively low (12 percentage points), though is larger than yesterday.
© Dukascopy Bank SA