AUD/USD extends decline after Tuesday's rally

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Overall, we still think the chances are that the amount of spare capacity in the economy will drag underlying inflation below the RBA's target range of 2-3%. If we are right, the RBA would need to cut interest rates." 
- Capital Economics (based on WBP Online)


Pair's Outlook 
Even though the AUD/USD currency pair inched closer to the 0.74 major level, the ultimate movement was still to the downside. The ISM Non-Manufacturing PMI data strengthened the Greenback and caused the given currency pair to breach the immediate support and even test the second one. The Aussie is expected to sustain losses again today, as technical studies retain their bearish signals. The closest support is to be pierced, while the second one at 0.73 will doubtfully be reached. As a result, trade is likely to close around 0.7315, unless the US fundamentals disappoint too much. 

Traders' Sentiment 
Bullish market sentiment returned to its Tuesday's level of 73%, whereas the share of purchase orders increased from 41 to 51%.
© Dukascopy Bank SA

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