AUD/USD drops towards 0.87 level

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Given the mix of "higher U.S. yields, rising asset market volatility, falling commodity prices, deteriorating terms of trade and potentially slowing Chinese demand, we turn bearish on AUD."
- Morgan Stanley (based on Bloomberg)


Pair's Outlook
Until today the pair performed well, the Aussie even touched the 0.88 mark and started to show some bullish signs. However, today the currency pair has plummeted below the 0.87 level once again, after the pair was impacted by the informational shock to the downside. The vast majority of the technical studies are bearish, suggesting that the current slump will continue. Nonetheless, to our mind AUD/USD will manage to consolidate above the 0.87 mark.

Traders' Sentiment
An overwhelming majority (72%) of the traders believe that the Australian Dollar is going to regain its bullishness and increase in value relative to its U.S. counterpart. In the meantime, the share of buy orders slipped from 77% to 60%.
© Dukascopy Bank SA

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