AUD/USD analysis (July 12, 2011)

The Commodity bloc currencies are finally reacting to wave of risk liquidation. The Aussie Dollar has broken down the 1,0650 support which opens the door to a new test of 1,05.

AUD/USD: daily chart

We might see additional pressure on the pair over the coming days if the Euro continues to drop further down which would confirm a shift of the market towards risk aversion.