The Australian Dollar (AUD) lengthened its decline against the US Dollar (USD) this morning dropping to 0.6860 after a short trip to 0.6930 wasn’t sustained. Risk off mood has been mostly to blame with equity markets closing down over 2.0% on the day and talk of the Chinese currency (RMB) being devalued. Iron ore also won’t be helping as it continues its August decline to 101.00 this morning from 117.00 as the demand for Chinese industrial production extends its downturn. A thin calendar this week should ensure the cross gets its moves from global geopolitical outcomes. A drop past 0.6860 and the AUD looks vulnerable.
Current Level: 0.6883
Last Weeks Range: 0.6859-0.7123