The Australian dollar fell hard during the session on Friday, crashing into the 0.75 handle.

That’s an area that has a certain amount of psychological significance to it, so it makes sense that we could get a bit of a bounce. If we break down below there, the markets will probably drop.

This is a bit of a “risk off” move, as gold markets have been rising but not helping the Australian dollar at all.

Because of this, I believe that short-term rallies will be sold in the near-term as we have so much bearish pressure picking up.

Editor’s Note: Equity investors/traders can use the Currency Shares Australian Dollar Trust (FXA, quote) ETF to take positions in the Aussie dollar without a FOREX account.  The ETF looks to track the price of the Aussie dollar (AUDUSD), minus ETF fee. The fund seeks to reflect the price of the Aussie dollar (AUDUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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