The Australian dollar fell hard during the session on Friday, crashing into the 0.75 handle. That’s an area that has a certain amount of psychological significance to it, so it makes sense that we could get a bit of a bounce. If we break down below there, the markets will probably drop. This is a bit of a “risk off” move, as gold markets have been rising but not helping the Australian dollar at all. Because of this, I believe that short-term rallies will be sold in the near-term as we have so much bearish pressure picking up.
Written by FX Empire