AUD/USD falls by 1.5% on the day now
The pair is set for its biggest fall in a year as price now falls to a low of 0.7127 on the day. In case you missed it, this was all set off by RBA governor Philip Lowe's comment that the central bank is turning more neutral with regards to its interest rate outlook earlier here.
Thereafter, heavy selling in AUD/JPY isn't helping the aussie's case either as price continues to dig deeper to the downside as we progress through the European morning.
For AUD/USD, there's minor support near the 0.7100 handle next but price looks to be in the clear to head towards a test of key support near at around 0.7080-85 before the 50.0 retracement level @ 0.7067 is called upon next.
As mentioned earlier, the next step in identifying a further break here will be to look at risk sentiment (markets should be debating the AUD/JPY fall in relation to risk-off flows). Right now, things are a little shaky after a slight dip in equities sentiment in the past hour. If that extends into something more pronounced in US trading, the aussie's beating looks set to continue as we look to wrap up the day.
