- Rabobank (based on FXStreet)
Last Friday, the Aussie's volatility established not only a fresh weekly low, but also a new weekly high. Nonetheless, the AUD/USD currency pair remained relatively unchanged on Friday, adding only three pips, while Sunday's drop erased that insignificant gain. As a result, the Australian Dollar opened trade just under the 0.73 psychological level, which is also bolstered by the weekly PP. The Australian appears to be struggling to breach the resistance, therefore, a slump is the most probable outcome; and if the US fundamentals improve, we might see the pair drop down to 0.7230.
Traders' sentiment improved, as 72% of all positions are now long. The share of sell commands also grew, from 62 to 69%.