- Westpac Banking Corp. (based on Bloomberg)
The Aussie barely managed to outperform its US counterpart, with the pair appreciating only 14 pips on Wednesday. Being a commodity currency, the Australian Dollar is dependent on oil prices, which are driving the pair lower today. The 100-day SMA is still the closest support, but a drop towards the monthly S2 at 0.7302 is not out of the question. A breach of the 0.73 level is also likely to set the Antipodean currency on a bearish path towards 0.71, unless demand, represented by the 200-day SMA and the weekly S1 circa 0.7250, is sufficient to cause a rebound. Meanwhile. technical indicators are bolstering the possibility of the negative outcome.
Nearly three quarters (74%) of traders are long the Aussie, while the number of purchase orders takes up 69% of the market (up from 60%).