AUD/USD: All about stop-loss orders over holiday period
As I mentioned just before the holiday period began, dealers had been eyeing size-able stops below 1.0380 and it was really only a matter of time before they were to get done. The AUD is likely to remain dominated by order-levels until news starts flowing again early next week (although the fiscal cliff still remains the big risk event).
The latest interbank reports show buying levels are solid 1.0300 through 1.0260 and they should hold over the next week, barring of course any massive risk aversion.
It should also be mentioned that the market is still long of the AUD, especially according to Prime Broker reports, so for now at least the risk remains to the downside.