August is the worst month for AUD/USD
The Australian dollar fell to the lowest levels since the crisis last week; it could fall further. AUD/USD averaged a 1.87% decline in August over the past decade.
It's all about China and commodity prices at the moment. The Shanghai composite index is down 10% in the past two days and that points to trouble ahead. Seasonally, August is also the third worst month for Chinese stocks.
But lost in all the focus on Shanghai is the slump in metals prices. Base metals are trading at cycle lows and iron ore continues to struggle.
It's tough to sell after the five-cent decline in July but August seasonals are poor for the Australian dollar.