AUD/USD fell hard on Monday as the commodity trade was hit fairly hard. The “risk off” trade came back into vogue during the session, and the afternoon in the US saw an acceleration of this move. The Aussie will often suffer at the hands of a “risk off” trade, and as a result it was no real surprise we saw this pair fall.
The breaking of the lows on Thursday signals a move down to the 0.97 level to fill the gap from a couple of weekends back, and we think this is what happens next. We are selling rallies, and a breakdown to fill the gap for a quick profitable short trade.