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– Rabobank (based on WBP Online)
Pair's Outlook
The AUD/USD currency pair managed to pierce the 20-day SMA on Monday, therefore, to preserve the four-month up-trend. Consequently, the Aussie is expected to outperform the US Dollar again today, with trade closing not further than 0.7682, namely where the four-year down-trend is located. Moreover, the weekly PP is providing additional resistance, bolstering the down-trend. Technical indicators also suggest the commodity currency is to edge higher against its US counterpart today. The base case scenario is a close around 0.7660, as there is no impetus present to push the pair higher.
Traders' Sentiment
Market sentiment remains bearish, with bears outnumbering the bulls by 34% points. The share of purchase orders surged once again, as the orders now take up 71% of the market, compared to 44% on Monday.
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