"The China downgrade and subsequent fall in the iron ore futures indeed "ironed out" the AUD today. However, the ASX closed flat, not a bad result when China iron ore futures dropped nearly seven percent. It may imply the AUD sell-off could be transitory unless we get a hawkish FOMC minutes this evening."
— Market Pulse (based on Investing.com)
Pair's outlook
The strong upside momentum affecting AUS/USD on Tuesday's session did not persist, demonstrating the equal buyer/seller proportion in the market. The same situation is expected to persist in the following trading hours ahead of FOMC Meeting Minutes that may alter the price either direction. Similarly to yesterday, the rate is stranded between the weekly R1 at 0.7491 and a support cluster around 0.7440. Upbeat fundamentals may strengthen the Dollar, setting the Aussie for a fall closer to the above-mentioned cluster. By and large, the pair is expected to remain in the range today.
Traders' sentiment
Market sentiment is close to being at equilibrium, as 51% of open positions are long. In addition, 65% of set up orders are to buy the Aussie.
| Sentiment | Today | Yesterday | 5 days ago | |
| Positions | 2% | 10% | 16% | |
| Orders | 32% | 34% | 30% | |
| Indicator | 1D | 1W | 1MN | |
| MACD (12; 26; 9) | Sell | Sell | Sell | |
| RSI (14) | Neutral | Neutral | Neutral | |
| Stochastic (5; 3; 3) | Buy | Sell | Sell | |
| ADX (14) | Neutral | Neutral | Neutral | |
| CCI (14) | Sell | Buy | Neutral | |
| AROON (14) | Buy | Buy | Buy | |
| Alligator (13; 8; 5) | Neutral | Sell | Sell | |
| SAR (0.02; 0.2) | Buy | Sell | Buy | |
| Aggregate | → | ↘ | → | |