© Dukascopy Bank SA
- Rabobank (based on Business Recorder)
Pair's Outlook
For the third consecutive time yesterday the Aussie remained relatively unchanged against the US Dollar, having edged only a few pips lower. However, falling oil prices and risk aversion are the main commodity currency drivers today. As a result, the Australian Dollar is likely to stabilise below the 0.72 psychological level, with the nearest support located even lower, namely at 0.7145, formed by the weekly S1. Technical indicators are bolstering the possibility of the negative outcome, as they retain their bearish signals in the daily timeframe. Nevertheless, we expect the exchange rate to close around the 0.7177 level.
Traders' Sentiment
Bulls now take up 73% of the market, compared to 64% yesterday. Meanwhile, the number of buy orders surged from 59 to 76%.
© Dukascopy Bank SA