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"Consumers are very, very cautious about spending their money, and if there's a few extra dollars back in their wallet, if the petrol price is falling rather than rising, that tends to improve people's confidence levels. It gives them a greater purchasing power, and hopefully for retailers' point of view - that means greater spending at shopping malls and the like."
- CommSec (based on ABC News)
Pair's Outlook
Pair is hovering just slightly above the September high at 0.9554, but even despite the short term technicals we don see it advancing much higher. We don't not neglect the possibility it might peak to 0.971, but that seems very unlikely. We see the pair trailing to 0.945 and staying there for some time. Only after that we could say if we will see one more dip to 0.935 or recovery to 0.961.
Traders' Sentiment
Aussie remains the most acquired major currency across the board with the greenback not far behind. As a consequence, bulls hold slim majority over the bears in the market, 60% against 40% to be exact. Overwhelming majority (75%) remain in favour of the bulls though.
© Dukascopy Bank SA