The AUD/USD pair fell hard during the session on Tuesday, breaking the bottom of the hammer from the Monday session. This is of course a very negative sign, and as a result I think this pair will continue to go lower. Honestly, if we can get a bit of a bounce from here, I would be all over it and start selling immediately. However, it looks like the 0.91 level is offering a bit of support, and with that in mind a bounce could very well come.
If we manage to close below the 0.91 handle on a daily candle though, I am more than willing to sell down there as well as I believe we are ultimately heading to the 0.90 handle. The "ceiling in the market" at the moment seems to be the 0.9250 level, and it is not until we get above there that I would actually consider anything along the lines of a bullish position.
Gold markets.
Pay attention to the gold markets, as the Australian dollar and the gold markets tend to move in tandem over the longer term. They have been a bit on the soft side recently, and as a result I feel that the Australian dollar will more than likely continue to selloff as we go forward. The real question is whether or not we can get below the 0.90 handle, because that of course would lead this currency much lower.
Also, you have to keep an eye on Asian growth, and whether or not it exists. The Aussies of course supply the Asians with a lot of their raw materials, and if they are buying, that's not good news for Australia. With that being the case, I feel that this market will be driven by a lot of different factors, global growth being a big one, as well as the Federal Reserve.
Jobs numbers will of course affect this market as well, as it will affect the US dollar. Pay attention to those, and good news out of America will more than likely be bad news for the Australian dollar, at least for the short term.
