- Mizuho Securities (based on CNBC)
The Australian Dollar completely erased its Monday's losses against the US currency yesterday, closing not far above the 0.70 level. Overall, the AUD/USD has been appreciating for more than a week now, thus, a bullish outcome today would not be out of hand. Supply around the 0.7020 level, namely the 20-day SMA, is rather weak, therefore, the Aussie has the potential to reach the weekly R1 at 0.7087 if the Fed is dovish today. Contrariwise, a hawkish statement is likely to push the pair below the immediate support, breaking the recently-formed up-trend.
Today 73% of all open positions remain long, while the portion of orders to acquire the Australian currency inched 1% higher, up to 48%.