- Evan Lucas, IG Securities (based on WBP Online)
The Aussie set off with a 65-pip rally, mainly due to an increase in iron ore prices yesterday. However, the Antipodean currency appears to have made a U-turn today, amid poor Chinese Trade Balance data. The monthly R2, which is the second support area, seems to be efficiently preventing the AUD/USD from edging lower. Meanwhile, the closest support is represented by the Bollinger band around 0.7451 and could still limit the dips, despite volatility stretching lower. Technical studies remain mixed, suggesting that there even is a possibility of the Australian Dollar outperforming its US counterpart by the end of the day, but with the closest resistance around 0.7555 out of reach.
There are 68% of traders holding long positions (previously 66%), while the portion of orders to buy the Aussie slid again, from 53 to 39%.