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"There is no doubt that they will start tapering soon enough, but perhaps the biggest worry for the market should be what will be the pace of this tapering and how aggressive Fed will be when it comes to winding down their ultra-loose quantitative-easing program."
- Ava Trade (based on MarketWatch)
Pair's Outlook
Despite the proximity to the tough resistance at 0.9321/00, AUD/USD refuses to move downwards, it has been trading sideways since Aug 9. This is mainly due to the supports at 0.9158/41 and 0.9096/64 that do not let the Aussie lose value. Still, we expect them to cave in eventually, giving the currency pair a possibility to reach the target at 0.87.
Traders' Sentiment
Although the Australian Dollar was already the most preferred currency in the SWFX marketplace on Friday, the percentage of those market participants who wish to see a stronger Aussie has only increased. The portion of long positions grew from 71% to 75%. Specifically in AUD/USD the distribution between the bulls and bears is 72% to 28%.
© Dukascopy Bank SA