© Dukascopy Bank SA
"Attempting to jawbone the Australian dollar lower is one way they can seek to get looser financial conditions without actually cutting interest rates. The cautiousness apparent in today's statement seems to reflect their desire to jawbone the currency lower."
- HSBC (based on The Australian)
Pair's Outlook
Pair started the week in a calm manner, but didn't show any bullish intentions and at the moment is trading below the weekly S1. We expect that 0.9301 will be tested in the course of the next few days, but it should hold, at least the initial test. In orders to uplift most of the downside risk the pair should advance above 0.9504 which seems very unlikely at the moment. Dip below 0.9249 could provoke a sell off to 0.9111.
Traders' Sentiment
Market sentiment remains similar to the one on Friday—bulls hold 68% ,of all open positions. That is 3% more than on Friday. Bullish side of pending orders, however, decreased by 20% since Friday and is at 46% gauge today.
© Dukascopy Bank SA