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"The more dovish than expected RBA statement supports our view that it will probably continue to lower its target rate towards 2.5 per cent in 2013, which will have only a modest weakening impact on the Australian dollar as yields will still be relatively high in Australia."
- Bank of Tokyo-Mitsubishi (based on The Financial Times)
Pair's Outlook
As 100-day SMA yesterday, 200-day SMA today did not provide enough support and pair dipped approximately 100 pips already and is hovering slightly above 1.03 supported by weekly S2. Technical indicators and current market sentiment suggests that we should not wait long for another dip, which might be even more substantial as there is not much strong or close to each other technical levels below weekly S3/monthly S2 at 1.024.
Traders' Sentiment
Allocation of open positions remains stable—40% of long and 60% of short. Pending orders, however, suggest that bears might strengthen their presence in the market significantly as 65% of pending orders are to go short.
© Dukascopy Bank SA