The next support of note for AUD/USD is the 0.9565 area where the OZ found a bottom on October 5, the day the RBA crossed up the market by not following up hawkish rhetoric with a hike.
Risk aversion is the overriding theme today and Aussie does poorly in a risk averse environment. China’s rate hike and the subsequent losses in commodities have taken a good deal of wind out of Aussie’s sails and will prompt traders to switch from relentless buyers on dips to reluctant sellers on rallies as they try and offload near-record long positions.
Crowded trades are difficult to manage. They are great while their moving in the direction of the trend but they are terrible when uncertainty pops to the forefront…
AUD has fallen as low as 0.9663 thus far and trades now around 0.9677.
