AUD/USD moves back towards the day's lows of 0.6630
The aussie is seeing very little reprieve on the way down after hitting fresh decade lows today, following the mixed labour market report earlier. The jobless rate ticked higher and that was enough for the market to trigger stops in Asia Pacific trading.
Since then, AUD/USD has lingered around 0.6640-50 levels but is now on the way back down as bond yields ease lower and European equities are also a little softer on the session.
For the case of AUD/USD, it is one of the rarer charts to be trading considering we are at levels last seen since 2009 and technically, it isn't very clear:
One can argue that technically we can see price even run towards 0.6000 upon a break here but we all know the market doesn't work that way.
As such, when trading a chart like this, the focus on sentiment and near-term momentum starts to become more important. The downtrend is certainly intact right now and there is little suggestion for a major turnaround just yet - besides possible short covering.
It is a case of "don't catch the falling knife" and it will stay that way for the aussie until we see a turnaround from either a fundamental perspective (better economic data, coronavirus fears ebbing) or a technical perspective (near-term bias turns more bullish).
So far, it is a zero for two and that indicates the path of least resistance is still lower for now.
