© Dukascopy Bank SA
"Many analysts have noted that investment continues to comprise more than 50 per cent of Chinese gross domestic product (GDP) and that the latest figures simply showed the same old government stimulus forces at work. The Aussie dollar initially sold off slightly on the Chinese numbers, but eventually recovered to trade back to day's highs as currency traders saw few red flags in the data."
- BK Asset Management (based on The Herald Sun)
Pair's Outlook
Pair seems to have calmed down after the rally last week. Looking at the short term and medium term technicals we are anticipating some bearishness in the nearest future. Even a minor sell off could take place. At the same time, however, we should not forget that pair has advanced above the 200-day SMA which will give significant support for the pair. Only a solid close below it could provoke a sell off. In order to advance further the pair should peak above the June high.
Traders' Sentiment
Aussie remains the most bought major currency across the board. Greenback is right behind it. As a consequence, market sentiment remains mildly bullish—61% of traders are long on the pair. It is 3% less than on Friday. Bullish side of pending orders, however, increased by 3% and is at 58% gauge.
© Dukascopy Bank SA