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– Rabobank (based on Reuters)
Pair's Outlook
The Aussie continued to edge higher against the US counterpart on Tuesday, successfully putting the weekly R2 at 0.7765 to the test. However, the unexpected victory of Donald Trump in the US presidential election caused the AUD/USD currency pair to drop below 0.76, putting the eleven-month up-trend to the test. The trend-line was reconfirmed, providing sufficient support for the exchange rate to climb back up, negating some of the intraday losses. Nonetheless, trade is still likely to close below the 0.77 mark, leaving the cluster around 0.7650 as the main support today.
Traders' Sentiment
Market sentiment remains strongly bearish, with 67% of open positions being short (previously 63%). At the same time, the number of orders to acquire the Aussie declined from 63 to 51%.
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