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"I don't think we learned anything really new but what the budget has done is remind people that the state of [Australian] public finances is not flattering and that the government has limited room for maneuver. The Australian dollar is in a sweet spot to be sold at the moment and the market is picking up on anything on the negative side to support that view."
- National Australia Bank (based on The Wall Street journal)
Pair's Outlook
It is rather evident that pair is driven mostly by the fundamentals as the aussie remains strongly bearish. However, the dynamics of market sentiment and the short and medium term readings from the Stochastic indicator suggest that bulls might be mounting a charge any time now.
Traders' Sentiment
Traders sentiment undergone significant changes in the market. Bulls strengthened their presence by 12% and at the moment they account for 71% of market participants. Pending orders, however, suggest that bears might take back some of this gain as 63% of pending orders are to go short.
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