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"The Aussie may go down to the 85 cent target that Glenn Stevens has talked about, but I don't see it any lower than that. When the market starts to realize that they're not going to see cuts coming through in Aussie rates, then the currency may well go back up again."
- Rochford Capital (based on Bloomberg)
Pair's Outlook
While yesterday we still considered a breach of the August low as still a viable scenario, today the event appears to be much less probable. This is due to a strong rebound of AUD/USD from 0.8845, which is about to end with the resistance at 0.8937/25 being violated. If this is the case, the exchange rate will be well-positioned to advance towards a dense supply area between the levels of 0.9312 and 0.9234.
Traders' Sentiment
The portion of bullish SWFX market participants gave up two percentage points compared to the previous figure and now stands at 71%. As for the orders set on AUD/USD, there was a notable decline in the portion of the buy orders—from 51% down to 42%.
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