The Aussie has had another day and night to forget and is currently testing 3-year lows.

It seems to be a bit of a double hit today as price is falling both because of the weak state of the Aussie economy and the RBA being forced to cut, as well as the obvious risk-off sentiment that is in markets at the moment.

Yesterday, equities plunged when China announced a fresh round of tariffs and that clearly weighed on risk-assets across the board.

In Asian trade, equities are doing their very best to rebound and the ES is higher on the day, currently up 0.5%.

The AUD/USD is also marginally higher today, holding above key support at 0.6950.

Much of the focus this week for the AUD/USD will be on the jobs report on Thursday. Where the RBA have linked a fair bit of their focus to what happens with jobs.

So for now, we might well see some more recovery today. At least until the US session gets underway.

The data points from Australia today were around confidence with business confidence up slightly on the last print, however, still a pretty ugly result in the context of where we need to be.

I still expect the Aussie to remain below 0.7000 for the foreseeable future.