© Dukascopy Bank SA
"Has the RBA reinstated an easing bias? Possibly. Given the RBA's comment that they still have 'ammunition' on rates, it would seem a fair assessment, that given the right conditions … the RBA would be more likely to be easing rates than raising them over coming months."
- UBS (based on The Wallstreet Journal)
Pair's Outlook
Pair continues to trail lower after receiving a strong bearish impetus a few days back. We expect to see some profit taking ahead of a 93 cent mark, but it is unlikely it could ignite any major rally. At best, we see the pair recovering up till 94 cent mark and remaining between it and 93 cent mark for some time. Further bearish action should at the may low at around 92 cent mark.
Traders' Sentiment
Bulls are continuing to strengthen their position in the market. Long share of open positions increased by 2% and is at 39% gauge. Besides that, pending orders set to go long increased by at least 7% and is between 45 to 80% depending on the range around current market price.
© Dukascopy Bank SA