AUD/USD remains on the back foot

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Given the recent USD strength, and that a Fed rate hike is fully priced, we see risks the USD gently eases after the FOMC meeting. But the rally in AUD is limited by the recent declines in iron ore prices. In addition, we think market pricing for a RBA rate hike early in 2018 is overdone." 
— CBA (based on The Business Times) 


Pair's Outlook 
On Monday, the AUD/USD currency pair closed trade almost in accordance with expectations, falling just 8 pips short from the 0.7580 target. As oil prices keep falling amid rising US stockpiles, pressure on the commodity currency keeps rising, causing the given pair to either edge lower or struggle to post solid gains. Despite these factors, the Aussie is now underpinned by a relatively tough support cluster around 0.7550, which also plays its part in Australian Dollar's limited downside developments. Although technical studies insist the given pair is to decline today, a close under 0.7550 is unlikely to occur.

Traders' Sentiment 
Today 68% of all open positions are short, compared to 67% previously. At the same time, the portion of orders to sell the Antipodean currency edged down from 63 to 59%.
© Dukascopy Bank SA

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