© Dukascopy Bank SA
"To the extent that we get some more easing in financial conditions, at this point it's probably more preferable for that to be via a lower currency at the margin than lower interest rates."
- Reserve Bank of Australia governor (based on The Sydney Morning Herald)
Pair's Outlook
Pair continued to depreciate, but seems to have found support at 89 cents. We expect that the pair will remain here in the short term, but strength of this support should be challenged soon. 2013 (Aug) low should hold initial test, but it is a bit too early to speak about possible medium to long term developments if it will be tested. In general, pair continues to face substantial downside risk and should advance at least above the 20-day SMA to uplift some of it.
Traders' Sentiment
Beers are further increasing pressure on the bulls as bearish side of pending orders increased by additional 11% since yesterday (31% in the last two days) and is at 60% gauge today. Bulls, however, continue to hold 72% of all open positions on the pair.
© Dukascopy Bank SA