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"Fund managers continue to favor the Australian dollar given its safe haven characteristics, higher yield differentials and its resilience in the face of the euro zone crisis"
- Sireen Harajli, Credit Agricole (based on Wall Street Journal)
Pair's Outlook
The Aussie dollar took a plunge against the US dollar for the second day and has reached the lowest level in almost two weeks. It is likely that bearish sentiment will persist in short-term and Weekly S2 at 1.0438 should be initial target, which should give enough boost for the pair to appreciate further and reach 1.0565 in the medium term.
Traders' Sentiment
AUD/USD is bearish at the moment as three investors hold short position for every with long position in the pair. However, in the range of 100 pips from the current price, the order allotment shows that 56% of investors have a bullish outlook on the Aussie Dollar -U.S. Dollar currency pair indicating that the pair might gain momentum and continue appreciating further.
© Dukascopy Bank SA