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— Westpac (based on The Business Times)
Pair's Outlook
As was anticipated, the immediate resistance area failed to hold the AUD/USD pair from appreciating yesterday. Ultimately, the Aussie added 150 pips against the US Dollar, with gains getting limited only when the exchange rate climbed over the 0.77 major level. The Australian Dollar now has the opportunity to keep outperforming the Greenback, with the April high of 0.7835 being in focus. However, after such a s substantial rally a correction is expected. As a result, the commodity currency is likely to close below the 0.77 mark, but return above that area in the upcoming days. The base case scenario today is a close circa 0.7680.
Traders' Sentiment
There are 65% of traders holding short positions today (previously 68%), while the share of sell orders dropped from 62 to 55%.
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