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"On balance, the modest downgrade to the Fed's inflation outlook suggests that the December forecast for four hikes this year is likely to come down at the Fed's next meeting."
- Commonwealth Foreign Exchange (based on MarketWatch)
Pair's Outlook
AUD/USD managed to test the 55– and 100-day moving averages today, but quickly retreated afterwards. This resistance is highly unlikely to give in to bulls, as this is also the place of the trend-line, which has been breached, when the pair confirmed its bearish intention by breaking out of the triangle. Accordingly, even if the Aussie appreciates during the next few days, the scenario implied by the weekly and monthly studies is likely to materialise—AUD/USD should bounce off of 0.7170/50.
Traders' Sentiment
The bullish sentiment in the SWFX market is a little less distinct than yesterday—71% of positions are long against 75% a day ago. The share of the sell orders increased from 46 to 59%.
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