- Commonwealth Bank (based on CNBC)
The Australian Dollar weakened against its US counterpart at the end of last week, returning under the down-trend and even piercing the immediate support. Today the Aussie is expected to extend its decline and stabilise near the monthly PP at 0.7171. Technical studies, on the other hand, suggest a rally is due. The nearest obstacle in the AUD/USD's path are the 100-day SMA and the weekly PP, not to mention the recently viable again down-trend. As a result, the Antipodean currency is likely to stabilise around 0.7210.
Market sentiment remains bullish at 74%, whereas the number of orders to acquire the Australian currency still takes up only 48% of the market.