© Dukascopy Bank SA
- BNP Paribas (based on Reuters)
Pair's Outlook
An increase in oil prices strengthened the Australian Dollar yesterday, allowing it to stabilise at a three-week high against the US counterpart. The AUD/USD currency pair ended trade on top of the 0.75 major level, which kept the pair at bay for the previous two weeks. As a result, it could be difficult for the commodity currency to edge higher again, unless it receives another boost from commodity prices. In this case gains are likely to be limited around 0.7534, where the 200-day SMA coincides with the upper Bollinger band. However, technical studies are unable to confirm the outlook, as they retain mixed signals.
Traders' Sentiment
There are 61% of traders with a negative outlook towards the Aussie today, compared to 66% on Monday. At the same time, the portion of orders to sell the Australian currency increased from 53 to 58%.
© Dukascopy Bank SA