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"Shifting rate expectations, while still technically dovish for the Australian dollar, can prove to be positive so long as Chinese data continues to stabilize."
- DailyFX (based on MarketWatch)
Pair's Outlook
Unlike most of the previous resistances that were encountered since the start of the recovery from a trough at 0.8847, the 55-day SMA, together with the monthly R1, seems to have managed to prevent further advancement of AUD/USD, even though the currency pair preserves the potential to go higher, up to 0.93. In any case, the bias towards the pairs is negative in the medium term.
Traders' Sentiment
Conviction of market participants that the Australian Dollar will outperform its North American counterpart is neither weakening nor strengthening by any notable amount despite the latest fluctuations in their exchange rate. Right now 74% of positions on AUD/USD are long and the remaining 26% are short.
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