There has been a fair bit of commentary around the state of the Australian economy over the weekend. Experts have been suggesting that things aren’t all that rosy and for the most part the Aussie economy is built on a property Ponzi scheme at the moment and is a house of cards.
And relative to the US economy, markets are slowly pricing in a shift in sentiment. The Aussie is on the decline and the US is slowly fighting back.
That is bad news for the AUD/USD, however good news for traders. I’ve been shorting everything I can all the way down from 80 cents and I still think there is more to come. Some of the major banks last week were predicting a move down to 65 cents.
At the moment the level at 0.7640 looks a nice level to be selling. I would look to short in that vicinity with a target at the 0.7560 level. We currently have an open sell signal on the AUD/USD.
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