- Societe Generale (based on CNBC)
The Aussie appreciated against the US Dollar, but not as much as anticipated, as the 55-day SMA prevented the pair from edging higher. The given SMA is now providing support, while the 20-day one limited intra-day upside volatility after the RBA left its cash rate unchanged. In spite of the Australian currency holding above its US counterpart, the weekly and monthly PPs keep weighing on the pair's ability to hover around 0.72. Meanwhile, risks of falling down persist, as technical indicators retain their bearish signs, although the eight-week bullish trend remains intact.
Although not as strong as yesterday, but traders' sentiment remains bullish at 70%. The share of purchase orders rose from 34 to 41%.