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"If the high exchange rate is judged to be inconsistent with keeping the economy close to non-inflationary full employment, we could expect that monetary policy would be eased in response, putting downward pressure on the Australian dollar."
-Australian Treasury report
Pair's Outlook
Pair dropped to the lowest level in 4 weeks. However, this might be just a short lived price correction as pair has hit 1.0438 which proved to be a strong support level for the pair recently and the outlook for the pair remains positive in the medium term.
Traders' Sentiment
Bearish sentiment has not changed and remained at the same level as 70% of the traders continue hold short positions on the pair. However, distribution of pending orders shows that we can expect major changes after the weekend as in the range of 100 pips from the current price 70% of traders have posted buy orders
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