- TD Securities (based on CNBC)
The Australian Dollar made a U-turn yesterday, dropping as low as the weekly PP and monthly R1 support cluster on weak Chinese data. Some volatility occurred today, amid another disappointed from China, but the pair is in limbo now. Downside volatility was already limited by the 0.72 major and the pair also remains supported by the yesterday's cluster, which might still cause a rebound today. Furthermore, technical studies retain their bullish signals, bolstering the possibility of a surge towards the 0.73 mark.
Bullish market sentiment returned to last Wednesday's level of 73%, whereas there are now significantly more orders to sell the Aussie, accounting for 77% of the market (up from 52%).