- Ian Stannard, Morgan Stanley (based on CNBC)
Last Friday, the AUD/USD pair declined, as the monthly PP forced the pair to retreat. The losses were not as sharp as anticipated; however, the Aussie tested the weekly PP at 0.7636 nonetheless. Ultimately, the Australian Dollar stabilised at 0.7670. The technical studies are showing mixed signs, while we still expect the pair to extend the dip. Taking into account the daily fluctuations the currency demonstrated in the last two weeks, Monday may close around 0.7600, and the lower Bollinger band could be tested in the meantime.
Slightly more traders are long the Aussie today, namely 63% of them, while a majority (65%) is planning to sell the currency.