AUD/USD: Parameters now at 1.0310/1.0440
The main dynamic in the market at the moment is position adjustment, but we should not forget that there are some other factors at play which are primarily AUD-negative. Falling interest rates, a slowing Chinese economy with subsequent lower commodity prices, and a somewhat stuttering domestic economy all point towards some rough times ahead for the AUD. Longer term players might have more luck playing this AUD-bearish view on the crosses. AUD/USD is still stuck in it’s weekly wedge pattern and we could easily get a test of the topside again near 1.0650 before it turns lower. In the short-term, look for support to form at 1.0310 and resistance should emerge near a 61.8% retracement level at 1.0440.