The AUDUSD pair gapped lower at the open on Monday, and then broke down.

This makes a lot of sense, because quite frankly the Australian dollar is highly leveraged to risk appetite, and as a result it makes sense that we will continue to go lower.

Short-term rallies offer selling opportunities as far as I can see, and therefore I have no interest whatsoever in buying this pair.

I believe it’s only matter time before we break down a bit from here. At this point, it would not surprise me at all to reach the 0.72 level.

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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