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- Christopher Kent, RBA (based on WBP Online)
Pair's Outlook
There were no surprises in the Aussie's behaviour at the end of last week. The exchange rate reached the weekly PP at 0.7677, but was pushed back up to 0.7724, where the AUD/USD stabilised just in front of the 20-day SMA. Right now the pair is supported by the weekly PP and 20-day SMA at 0.7707, while technical indicators are giving distinctly bearish signals. Nevertheless, the Australian Dollar is still likely to pierce the support cluster and close trade around 0.7680.
Traders' Sentiment
Although not as strong as on Friday, but market sentiment remains bullish at 71%. The portion of purchase orders lost 30 percentage points. The commands now account for only 28% of the market.
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