AUD/USD risks erasing weekly gains

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"While many will question the jobs numbers, these figures show strong signs of improvement in the Australian economy. Perhaps the recent interest rate cuts and Federal budget have started to bring confidence back to the jobs market." 
- IG (based on WBP Online) 


Pair's Outlook 
After trading flat on Tuesday, the Australian Dollar managed to extend the rally on Wednesday. The AUD/USD pair experienced substantial volatility, but ended the trading session in front of the immediate resistance level, namely the 20-day SMA. Nevertheless, the Aussie is expected to plunge back under the 0.77 area. The weekly PP remains the closest significant support, but a fall down to 0.76 is also possible if the US fundamentals show better-than-expected figures. Technical indicators also remain bearish, but not as much as in the previous two days. 

Traders' Sentiment 
Three quarters of all positions are now long, up from 72%, whereas the share of orders to acquire the Aussie retreated from 51 to 46%.
© Dukascopy Bank SA

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