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– Societe Generale (based on Reuters)
Pair's Outlook
Australian fundamentals caused the Antipodean currency to weaken against the US Dollar yesterday, with the target support area limiting the losses. The AUD/USD pair remains supported by this cluster, which is represented by the weekly S1, the 100-day SMA and the up-trend, where demand is likely to be sufficient to trigger a rebound. The main risk is tonight's FOMC Meeting Minutes, which could strengthen the Greenback substantially, causing the Aussie to lose the upper hand. We, however, expect the Fed to be more or less dovish, therefore, see the Aussie close higher by the end of the day.
Traders' Sentiment
Traders' sentiment remains bearish at 59%, while there has been a significant decline in the portion of buy orders. Now 78% of all pending orders are to sell the Aussie, compared to 42% on Tuesday.
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