The pair has not traded at the level since April 28, 2009
The AUDUSD is trading at new session lows (and new lows for the year) as it works it's way to the natural support at the 0.7000 level. The pair has not traded below that level since April 28, 2009. A move below that level will next look toward the lower trend line at 0.6975. That trend line was last tested on the 1,000 point plunge in the Dow last week. Traders paid attention then. Will they be as anxious now?
The RBA kept rates steady at 2% last night, but concerns about China (PMI below 50) and the tumbling of global stocks has traders concerned about further contagion and resource weakness in Australia.
Looking at the 5 minute chart, the 38.2%-50% of the last trend move lower comes in at 0.7041-49. Topside trend line is also in that area. Look for traders to lean against this area on corrections. Staying below, shows the sellers are remaining in control. Move above and the sellers lose some of their mojo.
