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"AUD continues to strengthen with optimism over rebalancing growth and a lack of 'jawboning' by RBA governor Stevens driving strength."
- ANZ Bank (based on the New Zealand Herald)
Pair's Outlook
As expected the AUD/USD has extended its advance and is trading above weekly R2 at 0.9218. The pair is looking to break a strong resistance at monthly R2 (0.9263); however, we think that the pair is capable of breaking it. Once that level is broken then the pair can easily gain to major level at 0.9300. Technical indicators send mostly mixed signals; although, weekly indicators suggest to sell.
Traders' Sentiment
The difference between SWFX market bulls and bears has widened as 56% expect the Aussie to lose the value against the buck. Concerning the orders placed 100 pips from the spot, there are now significantly more commands to buy – 59% compared to yesterday's 16%.
© Dukascopy Bank SA