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"We think there was a bit of profit taking after an exceptional week and also just a bit of taking risk off the table ahead of the RBA meeting this week."
- Bank of New Zealand (based on news.com.au)
Pair's outlook
Last week we saw rather significant climb from AUD/USD; however, it stopped near 0.93 and since then it is trading just below monthly R2 at 0.9262. We expect it to trade between monthly R2 and weekly PP (0.9200); although, when one of these levels is breached then a further movement is possible. Technical indicators are sending mixed signals, but we expect that the pair will decline and fall below 0.92.
Trader's sentiment
For the first time in a long period of time there are less than 40% of bulls among SWFX market participants, 37% respectively. Also the orders set to sell exceed 60% and have reached 67% today.
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