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"We still have some capacity to lower rates further should the need arise - and indeed, if the exchange rate continues to have a contractionary effect on the economy, we still have some scope to offset that by regulating conventional monetary policy, which is not exhausted at this point."
- Reserve Bank assistant governor (based on The Australian)
Pair's Outlook
Pair continued to depreciate after receiving a bearish impetus from 20-day SMA at 1.032 a few days ago. Technical indicators suggest that this might be just a temporary breakthrough from a range it has been trading few weeks prior and is likely to return there. Probability of such scenario is increasing due to widespread uncertainty amongst market participants.
Traders' Sentiment
Uncertainty is spreading amongst the traders as market sentiment is almost equally divided between the bulls and the bears. Distribution of pending orders does not suggest any clarity either as bears are holding only marginal majority (51%) on that.
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