AUD/USD still looking very heavy, more losses in store
- Markets are getting increasingly thinner in the lead up to Christmas and some big players like real-money funds and reserve managers still need to sell it seems;
- RBA Stevens again tried to talk the AUD down, saying that 85 cents would make more sense;
- The break below the psychologically important .9000 now gives rally-sellers somewhere to put their sell orders;
- If you really do feel like buying the AUD on dips, I’d look to the crosses like AUD/NZD near 1.0750, AUD/JPY near 90.00 and possibly even AUD/CAD;
- Nothing of note on the economic calendar;
- Initial AUD/USD target is trend lows at .8845 but a move to longer-term technical levels near .8650 looks quite feasible.