Watch out for stops in AUD/USD
The Australian dollar is in danger of falling to a fresh cycle low. A drop below 0.7021 would take out the October low and mark the worst level since February 2016.
The low so far is 0.7024, so we’re dangerously close to a breakdown and it will be coming at a tough time of year for liquidity. The 46 point drop in the S&P 500 isn’t helping and neither is talk of USD-positive rebalancing flows.
Update: It’s broken down to 0.7019. There are no stops yet but watch closely.