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- ANZ (based on The Business Times)
Pair's Outlook
Poor Australian trade balance was devastating for the Aussie, causing it to drop more than 100 pips against the US Dollar on Thursday. Although the AUD/USD pair is now supported by the monthly S1 and the weekly S3, it still remains on the back foot and risks falling deeper down. The main support rests slightly lower, formed by the 55, 100 and 200-day SMAs. Furthermore, the Fed rate hike expectations keep weighing on the Australian Dollar as well, making it even more difficult for the commodity currency to recovery from its recent slump. Meanwhile, technical studies keep suggesting a recovery is possible.
Traders' Sentiment
For the third consecutive day bearish market sentiment remains unchanged at 67%, whereas the number of sell orders declined from 59 to 57%.
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