"The A$ remains too high, underlying inflation risks staying below target for longer and there are risks around economic growth."
— AMP Capital (based on The Business Times)
Pair's Outlook
Not being able to breach the 200-day SMA on Tuesday's trading session, AUD/USD has now reversed its southward movement. It is currently targeting the weekly S1 at 0.7585; however, a close above this level is doubtful for today. Moreover, the pair has formed a descending channel in the hourly chart, bouncing off the lower boundary at 0.7546 on Tuesday. In case this minor pattern remains valid, it is expected that the upper channel line might provide some resistance around 0.76. Technical indicators flash bearish signals, demonstrating rather cautious stance towards longer-term appreciation.
Traders' Sentiment
Traders' sentiment has remained bearish, as 65% of traders are holding short positions. Meanwhile, 67% of all set up orders are to sell the pair.
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