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"The Aussie is following the U.S. dollar's decline against the yen after the BOJ decision. We saw the yen strengthen after the BOJ left policy unchanged because there was a small group of people expecting some additional stimulus."
- Gaitame.com (based on Bloomberg)
Pair's Outlook
AUD/USD maintain an upbeat momentum before the release of the US empire state manufacturing index, which is expected to be less than it is estimated. Thus, if AUD/USD to hold a bullish bias, 1.0059 (55-day ma) is going to be the initial target for bullish traders. Once the 55-day moving average is left behind, 1.0206 (R1 Monthly) and 1.0304 (Upper resistance level; 200-day MA) might be targeted by bullish investors.
Traders' Sentiment
The gap between longs and shorts has widened with 57% of long and 43% of short positions. However, the sentiment was not altered to a large extent, and it remains bullish. 68% of currency traders expect the pair to trade in the bullish trend further.
© Dukascopy Bank SA