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AUD/USD extends decline after violated up-trend

© Dukascopy Bank SA
"Several downside risks to the inflation outlook were mentioned [during the FOMC minutes]. Among those risks was the possibility that additional downward shocks to prices of oil and other commodities or a sustained rise in the exchange value of the [US] dollar could delay or diminish the expected upturn in inflation." 
- Rabobank (based on WBP Online) 


Pair's Outlook 
Upbeat US fundamentals only added to AUD/USD weakness on Wednesday, causing the up-trend to get pierced, with trade closing only at 0.7071. Today the Aussie plunged to a four-month low, amid prolonged risk aversion trade, with no drivers present to provide sufficient bullish momentum for a rebound. The final level to stop the Australian Currency from sustaining even sharper losses is located at 0.6967, namely the monthly S1, which is also the final frontier before the Antipodean currency slumps towards the 2015 low at 0.6907.  

Traders' Sentiment 
Bullish traders' sentiment remains unchanged at 71%, while the portion of orders to sell the Australian Dollar slid from 67 to 64%.
© Dukascopy Bank SA


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