The Australian dollar finished nearly flat for the third consecutive day on Wednesday as AUD/USD flirts with the 2010 low.
AUDUSD
The closes in the past three days have been 0.8083, 0.8084 and 0.8079. In two of the past three days, AUD/USD briefly traded below that level.
The three days of indecision but at triple-doji on the chart and that’s often a sign of indecision. At this point, it’s likely to be the market simply gathering the strength for another leg lower but there’s also a case for buying AUD/USD on oversold conditions and better yield.
The deciding factor might be the Chinese CPI report early on Friday and the non-farm payrolls report late. If they both point in the same direction, go with it because it’s likely to lead to a 200-300 pip move.
