The rugby team just lost, the cricket team is no longer the best, the economy is slowing, and now the currency is sliding. Little wonder that sentiment down under is more fragile these days. Indeed, for the Aussie, it now looks as though the bear market has well and truly begun. In early London trading, the Aussie has dipped further, down to a six month low of 0.9929. Just two months ago, it briefly penetrated the top of the 1.05-1.10 trading band which had seen essentially all of the price action for the previous four months. In the current month alone, the AUD has lost 7% against the surging dollar. Not helping matters today is the latest desperate attempts to reduce risk across-the-board, with base metal prices under renewed assault. In addition, there has been some speculation that New Zealand may be downgraded – the Kiwi is down another 1.5% today, and it too looks vulnerable. Right now, the bears are in charge down under.

Source: www.csr.fxpro.de