The AUD/USD pair fell rather significantly during the session on Friday, as we sliced through the 0.7750 level by the end of the day. It now looks as if this pair is ready to continue going lower, probably heading down to the 0.76 level, which is basically where we bounced from a couple of weeks ago. This looks like a continuation of the longer-term downtrend, and more than likely will send this market looking for the 0.75 handle given enough time. I believe that rallies will continue to offer selling opportunities on short-term charts, and at this point in time that the sellers are most firmly in control.
Going forward, its only a matter of time before the sellers break down below the recent low and attack the 0.75 handle, but it would not surprise me at all to see this market continue to go even lower than they are. If it does, anticipate seeing the 0.70 level before it’s all said and done. With that being said, you have to keep an eye on the gold markets as well, as they can give a bit of a boost in one direction or the other to this pair. Remember, Australia is a major exporter of gold, so as long as gold markets are doing fairly well, the Aussie typically gets at least a bit of a sympathy bid. However, they certainly aren’t at the moment.
[CAD:FXAcademy CTA #73]Asia
You are also going to have to keep an eye on Asian economies, as Australia is such a large exporter to that region. It’s probably only a matter of time before Asia pick back up, but right now it doesn’t look overly robust, and that of course isn’t going to help Australia either. Commodity markets are greatly influential in general, as not only to the Australians export gold, but they are heavily involved in most aspects of mining. Keep an eye on hard assets such as minerals and precious metals, and you can perhaps get a heads up on what’s going to happen here.
