The AUD Breaks Support – Get Short?
Rowan Crosby • 1 min read
It’s been a relatively quiet day for AUD after a fair bit of action in recent days.
After a little bit of a bounce to the upside in overnight trade, the Aussie has once again continued to sell off.
The data out today was relatively minor, however, the Australian trade balance came in a little underwhelming at 0.856B (vs 1.800B expected).
If anything, the slide today is just a continuation of what we’ve been seeing over the last few sessions.
The reality is that the RBA doesn’t want the AUD above 80 cents and they’ll do whatever it takes to push it lower.
For traders, that best advice is to go with the underlying sentiment and look to get short on pullbacks.
Early in the session, the AUD took out the support level that was established last week and was holding up over the last few days.
Now that we’ve broken down, I expect to see more downside momentum and I don’t want to be fighting it.
Look for a test of the next minor support level around 0.79186.