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"The Aussie has got a little bit of room to price in some more easing, but not a lot."
- Westpac (based on Bloomberg)
Pair's Outlook
Last week AUD/USD was falling freely, failing to find any ground after consolidating just below the early 2009 and late 2010 highs. Now the currency pair is facing the support represented by a combination of the weekly and monthly S1. Once and if they are eroded, there should be no obstacles separating the price and an important psychological level at 0.87.
Traders' Sentiment
It seems that some traders took the recent slowdown in the pace of the Australian Dollar's depreciation as a sign of AUD/USD being on the verge of changing a direction, since the portion of long positions has increased by a sizeable amount, namely five percentage points up to 75% since Friday.
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