Fresh lows in the Australian dollar
Early last week it looked like the Australian dollar was breaking out as it hit at three-month high. Instead, it's resulted in a brutal turnaround and 8 straight days of declines.
The pain extended today in the past few minutes as AUD/USD fell to a session low at 0.6871 -- the worst since June 19.
This is really a story about the Fed.
Falling rate cut expectations are giving the US dollar a boost while stoking worries about global growth.
Technically, the way the pair broke through the mid-July low is a negative sign. It will need to show some kind of life ahead of the June low of 0.6832.
Excluding the flash crash at the start of the year, that level matched the 2016 low and is a huge level. Given that we're near oversold levels, and that support is nearby, there is a case for buying the Aussie but a better trade might be to wait and sell on a break lower.
