AUD/USD is trading to fresh lows since May 2020 as price is starting to chase a firm break below key technical support on the charts. The trendline support (white line) has been a holding level for buyers over the past few months but is finally cracking and that sets out the potential for a much steeper drop in AUD/USD moving forward.

The dollar is continuing to run a rampage in the major currencies space as the post-Fed gains continue to build momentum. Add that to struggling equities and a weaker Chinese yuan, that's pretty much a disaster for the aussie.

As things stand, the 0.6500 level is on the cards next with the 61.8 Fib retracement level at 0.6461 also in play. But break below that and we will start talking about the return of the Pacific peso with 0.6000 in the horizon.