- Capital Economics (based on WBP Online)
On Wednesday, the support area around 0.79 failed to stop the AUD/USD from falling. Nonetheless, the second support level was not reached, and the pair stabilised around 0.7875. The Greenback is expected to pressure the Aussie again today, so we might see a decline towards the monthly PP after all. Even if it fails to prevent the Australian Dollar from falling deeper, the support cluster around 0.7790 should suffice. Meanwhile, technical studies retain mixed signals, unable to confirm either scenario.
Bulls slightly retreated, as 70% of traders hold long positions, compared to 74% yesterday. At the same time, the percentage of buy commands decreased from 66 to 53%.