The AUDUSD pair broke higher during the course of the session on Monday, but gave back more than half of the gains from the early part of the session.

With this being the case, the market looks as if it is going to continue to struggle to make any significant move one way or the other, and therefore I think you simply can trade back and forth on short-term trades, or just wait on the sidelines as we have no real clear direction at this point in time.

Pay attention to gold (GLD, quote), it tends to have a positive correlation with this market.

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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