The selling today is in part to do with the poor Australian jobs report earlier here. But it also comes against the backdrop of a firmer dollar from yesterday and with growing concerns over the Chinese economy and a flailing yuan currency as well.
The daily break below 0.6500 and confirmation break below the May low of 0.6458 has been a technical trader’s dream so far when viewing AUD/USD. And it builds on the factors driving the move since last week as highlighted previously:
The chart above suggests that there is little in the way of a push towards 0.6200 next and given prevailing market conditions, it is easy to imagine that stopping by soon unless there is a turnaround in the bond market. The double-top pattern at 0.6900 does suggest a move towards 0.6300 at least, so that will be the first point of contact.
This article was written by Justin Low at www.forexlive.com.
