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– Capital Economics (based on Business Recorder)
Pair's Outlook
The Aussie edged higher for the sixth day in a row yesterday, easily retaking the 0.77 level, while meeting resistance only around the 0.7725 level. However, the AUD/USD currency pair is to close significantly lower on Thursday, amid a poor reading of the Australian Employment data. The pair is likely to not only fall back under the 0.77 mark, but even drop below 0.7676 level, namely the weekly R1. Ultimately, the third support area, located around the 0.76 psychological level, is to limit the losses and downside volatility. Meanwhile, the base case scenario is a close around 0.7650.
Traders' Sentiment
Bears remain in control, taking up 68% of the market, unchanged since yesterday. At the same time, the number of orders to purchase the Australian Dollar increased from 50 to 58%.
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