© Dukascopy Bank SA
"We have been looking for the RBA to cut the cash rate by 50 basis points in the fourth quarter, with a risk that they may start in October. Today's dovish minutes have increased the likelihood that the RBA will cut rates by 25 basis points at their upcoming October meeting."
-UBS (based on The Wall Street Journal)
Pair's Outlook
Pair continues to go through bearish correction after extremely bullish week. It breached Fibonacci (38.2% of move since 6th of September) at 1.0446 after receiving a push down from weekly pivot (PP) at 1.0493. Although technical indicators suggest that this correction should not last long we should take in to account that much more indicators give neutral signal and pair should continue to be driven by trader sentiments in the near future.
Traders' Sentiment
Bearish sentiment persists for the second day—at the moment 54% of traders hold short positions on the pair. It seems this sentiment should strengthen in the future as 60% of posted orders are orders to sell the pair.
© Dukascopy Bank SA