- Capital Economics (based on WBP Online)
The Australian Dollar behaved in accordance with the forecast yesterday, as it edged lower versus its US counterpart. Moreover, the trade closed just under the 0.7640 predicted level, near the lower Bollinger band. The Aussie is expected to experience more weakness today and fall beyond the immediate support. As a result, the AUD/USD is likely to stabilise around 0.7550, but with risks falling even towards the April low at 0.7532. Technical indicators retain their bearish signs, bolstering the possibility of a slump today.
Although not as strong as yesterday, but market sentiment remains bullish at 72% (previously 73%). The majority of orders are now to acquire the Aussie, as their share increased from 28 to 53%.