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"A big part of strength is the decision by the US Federal Reserve to delay a decision to taper its large scale asset purchase program; that weakened the US dollar which strengthened ours. Also, in Australia consumer and business sentiment and unemployment have all improved so markets willing to price out further interest rate cuts by the RBA."
- ANZ (based on ABC)
Pair's Outlook
It seems that the pair has consolidated above the 200-day SMA. It is very likely that bulls might take a step back and see the reaction of the rest of the market participants. As a consequence we might see the pair hovering around the 200-day SMA for a few days. However, it should dip below 0.9536 to neglect most of the bullish sentiment. If the pair decides to advance further, 0.970 might have some psychological effects on the bulls.
Traders' Sentiment
Situation in the market remains exactly the same as yesterday. Aussie and greenback remain the most and second most acquired currencies across the boards respectively. Bulls continue to hold 64% of all open positions and bullish side of pending orders is still holding at 55% gauge.
© Dukascopy Bank SA