© Dukascopy Bank SA
"The Australian and New Zealand dollars are being bought as risk assets, so they tend to be correlated with stock moves. Amid the broader sell-off of the yen, the Aussie and kiwi are being chosen as higher-yielding currencies."
- Tokai Tokyo Research Center Co. (based on Bloomberg Businessweek)
Pair's Outlook
Pair advanced by more than 60 pips after receiving a bullish impetus from 55-day SAM at 1.034 yesterday. Although pairs outlook is rather neutral, stochastic indicator suggests it is not just a one time incident, but rather a start of a bullish rally which should test strong resistance areas around 1.044 and 1.047 rather soon.
Traders' Sentiment
For the second week, an overwhelming majority of market participants (no less than 70%) continue to hold short positions on AUD/USD—73% today. Pending orders are only in slight, 1%, favor for the bulls suggesting that market moods should not change any time soon.
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