© Dukascopy Bank SA
"It was a strong week for the Australian dollar last week on a truckload of strong data - GDP, exports, retail sales - and the RBA Governor on Friday at his semi-annual testimony noted that he did not see a case for easing at this point in time."
- TD Securities (based on The Sydney Morning Herald)
Pair's Outlook
Pair extended it's losses further after failing at the 200-day SMA at the end of the last week. We expect it to receive at least a minor bullish impetus from the 90 cent are, but it is unlikely this could ignite a major rally. Consolidation around it seems much more plausible at the moment. In case of an unexpected (solid) close below the 90 cent mark it is likely we will see the pair trailing towards 89 cent mark.
Traders' Sentiment
Bullish side of open positions increased substantially, by 9% till 65%. However, bearish side of pending orders increased by 30-40%, till approximately 65% suggesting we might see major changes in the sentiment soon.
© Dukascopy Bank SA