The Aussie is getting an absolute hammering lately as the USD strength has really put it to the sword. Overnight we saw further declines in the AUD/USD as we broke down through the 0.7800 level which had been holding up in the short-term.

Long-term the only way for the Aussie is down I suspect, but as we’ve seen before even when it appears a certainty we can get a spike higher. The CPI figure today is predicted to be a little better than previously and a strong number may pave the way for interest rate rises.

For me, though I would like to see a poor figure. That would really send the AUD tanking and the momentum would make for a great trade, given how weak we have already been.

0.7750 is the key support level. If we get a weak number, I’ll be looking to sell for a longer-term move, assuming we can hold below that level.

AUD/USD -240 min Chart.