AUD/USD turns back, erases most gains

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The decline in the exchange rate is assisting the transition (as it assisted in absorbing the earlier phase of the mining boom). But we have always said we cannot hope to fine-tune this transition, however much we may wish otherwise." 
- RBA (based on WBP Online)


Pair's Outlook 
The pair fell under the downward pressure after a strong rally. The dip turned out to be substantial, as the closest support level lacked the strength to prevent the decline. In the end the Aussie settled just above the weekly PP at 0.7644. In aggregate the technical studies are pointing south, suggesting a further decline for the Australian Dollar. The nearest significant demand area lies with the lower Bollinger band around 0.7564. 

Traders' Sentiment 
Traders' outlook towards the Aussie remains positive, since 69% of open positions are long. The gap between buy and sell orders widened: 32% of all commands are to acquire the Antipodean currency against the Buck (36% yesterday).
© Dukascopy Bank SA

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