Last week it looked like the AUD was getting set to rally up to the 82 cent mark. Now it looks like we’re starting down 78 cents. That’s a fairly big drop in a short period of time.

So what’s changed? In my opinion, it’s the USD strength that is pushing the AUD down. Which is fine as that gives us an opportunity. The RBA doesn't like the Aussie currency to be valued at 80 cents or higher so this would be very pleasing.

That said we should be continuing to look for short opportunities. Any pop to 0.7900 is a good opportunity to short in my opinion. These round number levels really hold up well in the AUD. That level would also see a nice extension above the 10-period moving average which offers a degree of short-term mean reversion.

AUD/USD – 240 min Chart.