© Dukascopy Bank SA
"While the market was expecting some weakness to come through at the end of the year, it wasn't expecting investment to fall off a cliff. The immediate sell off in the Australian dollar following the release of the figures sums up the market's feelings pretty well."
- Forex.com (based on The Australian)
Pair's Outlook
Pair tried to trail lower, but weekly S1/55-day SMA held the initial test. We suspect this wasn't the final attempt to do so and we should expect to see the pair trading around 0.885 in the medium to long term. In case of an unexpected recovery it is unlikely we will see the pair trading above the 2014 high at 0.9081.
Traders' Sentiment
Distribution of pending orders is continuing to be volatile. Bullish side to day contracted by 25-40% and is at 41-52% gauge. Distribution of open positions, however, remained almost unchanged—63% long.
© Dukascopy Bank SA