- RBC Capital Markets (based on Reuters)
The Australian Dollar edged down yesterday, but not as much as anticipated. The Aussie experienced slight volatility, but was unable to reach the immediate support around 0.7705. Nonetheless, the AUD/USD currency pair likely to extend its decline, ignoring the support cluster today. The base case scenario is a drop to 0.76 major level, but the weekly S1 at 0.7623 might prevent the pair from falling too deep. Technical indicators retain their bearish signals, bolstering the possibility of a negative outcome on Wednesday.
Although not as strong as yesterday, but market sentiment remains bullish at 72% (previously 73%). At the same time, the portion of orders to acquire the Australian currency increased from 32 to 47%.