© Dukascopy Bank SA
"The market's pricing for the extent of RBA rate cuts looks overdone. I don't think the Aussie will get sold off too heavily, unless we get a real deterioration in the euro zone debt crisis. Eventually we see the Aussie heading up towards the $1.04 level, probably by early next year."
- Khoon Goh, Australia & New Zealand Banking Group Ltd. (based on Bloomberg)
Pair's Outlook
AUD/USD didn't move much compared to yesterday as the pair is floating near the 55-da simple moving average. However, if bearish mood intensifies, 0.9955 (S1 Weekly) will be the first target among bears. A breakout here would expose next support lines at 0.9826 (23.60% Fibo) and 0.9740 (Lower Bollinger band; S3 Weekly), respectively.
Traders' Sentiment
Currently, the market sentiment is still neutral on AUD/USD as the ratio of long and short positions is 50%/50%. Over the middle-term, 77% of investors anticipate the pair to fall further whereas 23% of them expect AUD/USD to rise.
© Dukascopy Bank SA