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- Morgan Stanley (based on Business Recorder)
Pair's Outlook
The Australian Dollar remained almost completely unchanged against the US counterpart on Monday, preserving the three-week up-trend. However, the RBA Meeting Minutes caused the Aussie to experience sharp selling pressure today, due to easing expectations. The AUD/USD currency pair is unlikely to recover from its decline today, the only question is whether the second support area, represented by the weekly S1, the 20 and the 100-day SMAs, will be able to limit the losses. The worst-case scenario is a drop towards 0.7435, where the weekly S2 coincides with the monthly PP. However, we believe the exchange rate is to stabilise at 0.75 by day's end.
Traders' Sentiment
Nearly three quarters (74%) of all open positions are short, while the number of purchase orders inched up from 30 to 51%.
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