- Nordea (based on Reuters)
An increase in oil prices yesterday caused the Australian currency to strengthen against the American Dollar, but as expected, with gains limited by the immediate resistance cluster. This cluster also acts as the closest resistance today, preventing the pair from retaking the 0.77 major level. However, technical indicators retain their bullish signals in the daily timeframe, suggesting that the Aussie might edge above this psychological level today. In this case the next target would then be the July 2015 high at 0.7738, unless bears take over the market and push the exchange rate towards the immediate support at 0.7607.
Traders' sentiment remains bullish at 68%, unchanged since Wednesday. At the same time, the portion of purchase orders returned to its Tuesday's level of 54% (previously 38%).