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"A weak report that causes expectations of Fed tapering to shift later has the potential to make the dollar tumble against the Australian and Brazilian currencies and perhaps the yen."
- BMO Capital Markets (based on CNBC)
Pair's Outlook
After showing a little bit of hesitation to carry on with the decline near the weekly S3 at 0.8959, AUD/USD is still grinding lower along the down-trend support line that was breached on Jul 16 but is nevertheless anticipated to remain topical in the medium term. The formation of the current leg down could last until the Feb 2010 low at 0.8568 is reached.
Traders' Sentiment
The distribution between the bullish and bearish SWFX marketplace participants remains unchanged, namely the same as yesterday. An overwhelming majority (70%) of traders are keeping their long positions, while a distinct minority (29%) are betting on the Aussie's further depreciation.
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