The AUDUSD pair fell during the course of the day on Wednesday, as the area above the 0.70 level continues offer resistance.

We are not surprised in this move, and we believe that a move back below the 0.70 level should send this market down to the 0.69 level again.

We believe that any rally at this point time has to be looked at as a potential selling opportunity, as the Australian dollar continues to soften in general.

On top of that, the gold markets got absolutely pummeled during the session, which of course is very bearish for the Aussie.

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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