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"For now, the unwinding of positions built around the Fed tightening is dominating concerns about commodity weakness. I don't think it will last."
- Imre Speizer, Westpac Banking Corp. (based on Bloomberg)
Pair's Outlook
The Australian Dollar slightly overshot our target, as the exchange rate reached the 100-day SMA, rather than the expected 0.72 level yesterday. Nevertheless, the price still closed at 0.7193, with the pair now supported by the monthly PP and the weekly R1 around 0.7180. At the same time, the 100-day SMA keeps providing resistance, but AUD/USD is determined to pierce it, despite the technical indicators retaining bearish signals. If the Aussie preserves momentum against the US Dollar, the down-trend at 0.7230 could get tested today as well.
Traders' Sentiment
The sentiment is somewhat less bullish than yesterday. The percentage of bulls declined from 73 to 70%.
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