The AUD/USD has had a busy week so far with a range of factors impacting it.

However, it is clear that the 0.7200 will take some work to get through after the sellers smacked it down to earth last night.

Most of the action in the AUD/USD started yesterday, when the RBA came out and left interest rates unchanged at 0.25%. Going into the meeting there had been around a 40% chance that we would see a cut to 0.1%. While the board didn’t cut the door is open to further easing if required.

I’ve been a little dubious on this cut and still don’t think the RBA will pull the trigger. Regardless, the Aussie did rally on the news.

Then later that evening, the Federal Budget was released. It was a big-spending budget with a host of tax cuts and stimulus measures aimed at lifting the economy out of recession. There was little impact on the AUD, given that most of the measures had been presented by the Government and despite the ugly 100 billion hole in the budget, most feel that this is a positive for the economy.

Then into the US session and while there wasn’t much to write home about early, the major news was again Donald Trump, who came out and said he would not be moving forward with further stimulus until after the election – at which point he would release a large package.

This hurt markets, more than his health worries lately, and was really the catalyst for the AUD/USD getting smacked down.

As we can see on the chart below, the 0.7200 level looks like a perfect double. top and for the time being the sellers are in control. Price is basically sitting on 0.7100, while below us the 0.7000 is major support.

All-in-all, we can listen to the commentary or simply wait for a break out of this current range which might be the best indicator of all.