The AUD/USD pair had a back-and-forth session on Tuesday as the daily candle ended up being very neutral. The pair does look anemic at this point in time, and a move to the 1.03 level looks to be almost a given at this point. The market looks like it is paying more attention to China than anything else and this of course will have a serious effect on the value the Australian currency.
Chinese numbers have been rather weak lately, and this of course looks anyone who is an Australian bull. With this being said, 1.03 should be supportive, and if it gives way this would move the markets as it would be a serious break of support. We could see a bounce at this level, and would consider buying the right supportive candle but currently are already short. If we manage to close below the 1.03 level, we are more than willing to add to our sell position.
Written by FX Empire