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– Commerzbank (based on Reuters)
Pair's Outlook
Hawkish RBA caused the Australian currency to reach the second resistance area yesterday, with trade closing near the forecasted level of 0.7660. Today the Aussie is likely to keep outperforming its US counterpart, with yesterday's main resistance area now being the target. Technical indicators also suggest the AUD/USD currency pair is to appreciate today, but the target, namely the 0.77 major level, is still unlikely to be reached. However, with the FOMC statement due later today, a dovish tone could spark more USD-selling, which has the potential to push the pair even towards another psychological resistance around 0.7740.
Traders' Sentiment
Today 65% of traders are short the Aussie, unchanged since Tuesday, whereas the share of buy orders increased from 52 to 56%.
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