The AUD/USD pair fell during the session on Monday as the “risk off” attitude came back into the marketplace. The resulting candle for the session almost looks like a shooting star, but nonetheless it says the same thing: weakness in this pair.
However, we don’t necessarily expect a meltdown at this point. The 1.03 level needs to be overcome to the downside in order to start selling now. We think the weak economic numbers out of China will continue to hurt the Australian dollar in general, but there is also talk of the Federal Reserve easing its monetary policy later this week. With this being said, we think that the real move in this currency pair could come next week after the Fed meeting. Nonetheless, if we get a daily close below the 1.03 level, we are more than willing to start selling regardless of the day.
Written by FX Empire