The AUD/USD pair fell hard on Thursday as the “risk off” trade is now in control again. The lack of risk taking makes sense, as the economic numbers out of Germany and more importantly to the Aussie – China – have been weak over the last 24 hours. This should kill off a lot of Aussie exports to China, and this will continue to weaken the currency going forward. Because of this, we are selling rallies going forward on signs of weakness. We will not buy, but can see that the parity level could cause a bit of a bounce – which we will gladly sell into.
Written by FX Empire