AUD/USD touched as low as 0.9316 on a combination of softening commodities, a stronger US dollar and pain in risk trades.
Today’s price action traces a bearish engulfing candle reversal on the daily chart, similar to EUR/USD. The head & shoulders pattern is another reason to be worried.
AUDUSD daily chart
The main risk in the hours ahead is the China flash PMI from HSBC at 0145 GMT. The consensus is for a reading of 50.8 from 50.9 in Oct.
