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— Societe Generale (based on Reuters)
Pair's Outlook
Ahead of the Fed Funds Rate decision the US Dollar failed to outperform the Aussie, in spite of inflation and retail sales showing relatively good signs. The AUD/USD currency pair is now supported by a tough cluster around 0.7550, formed by the weekly PP, the monthly S1, the 55 and the 200-day SMAs. This demand area is expected to prevent the commodity currency from edging lower today, even if USD bulls manage to take over the market again. From above the closest resistance rests circa 0.7621, represented by the weekly R1 and the 20-day SMA, but is unlikely to fully limit upside volatility should the Fed disappoint.
Traders' Sentiment
For another day 68% of all open positions remain short, whereas 62% of all pending orders are to sell the Aussie (up from 59% on Tuesday).
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