"The improvement in the global economy has contributes to higher commodity prices, which are providing a significant boost to Australia's national income."
— Philip Lowe, Governor of the Reserve Bank of Australia (based on Bloomberg)
Pair's Outlook
The Aussie was guided by strong upside momentum on Monday, closing just below the 20 and 100-day SMAs. Today, this resistance proved to be strong enough to reverse the pair to the downside. The Aussie jumped as high as the upper wedge boundary circa 0.7558, reaching its highest point in the morning. This upside volatility, however, could not to keep the pair in the green area. The base scenario favours a close between the monthly and weekly PPs at 0.7507 and 0.7524, respectively. Traders' attention has now shifted to the Greenback prior to fundamentals on Wednesday.
Traders' Sentiment
The market sentiment has turned bearish, as 51% of open positions are short. Meanwhile, 52% of pending orders are to buy the Aussie. .
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