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- Mitsubishi UFJ Kokusai Asset Management (based on Bloomberg)
Pair's Outlook
The Australian Dollar negated all Wednesday's losses and even reached the intraday target of 0.7360 yesterday. The broadly stronger US currency is outperforming its Australian counterpart today, as today's NFP data increased the probability of the December rate hike. The second target to limit the losses is located only at 0.7263, namely the weekly R1. A drop this low would require a stronger impetus, as the pair also has a chance to post gains as high as 0.7385, where the weekly R3 and the Oct high are located.
Traders' Sentiment
Although market sentiment remains bullish, only 70% of traders are now long the Aussie. The gap between the buy and the sell orders narrowed, now taking up 45% and 55% of the market, respectively.
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