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"That's not really what they want in a sense that as commodity prices come off, that's a negative for the economy. I think they look to the Aussie dollar to being lower as a way to offset that and that's not happening at the moment."
- JP Morgan (based on ABC News)
Pair's Outlook
After failure at the weekly PP the pair has plummeted by more than 50 pips, but at the moment is hovering slightly above the 20-day SMA. We expect the pair to stay here for a few more sessions and start slow climbing higher afterwards. 94 cent vicinity should be reached soon and might cause some turbulence, but is unlikely to reverse the bullish trend. However, recent high around 0.9441 could easily do so causing the pair to be sold off till the 20-day SMA once again.
Traders' Sentiment
Traders continue to demonstrate mildly bullish attitude. Long share of open positions expanded by additional 2%, till overall 30%. Pending orders are around 60% level set to go long as well.
© Dukascopy Bank SA