The AUDUSD pair rose during the course of the day on Monday, as we bounced a bit off of the 0.87 handle. However, the 0.88 level above should be resistive, so we look at this is a potential selling opportunity.

In fact, we have no interest whatsoever in buying this market until we get above the 0.90 level, something that doesn’t look very likely at this moment.

We believe that the market will head down to the 0.85 handle given enough time, and with that we are very bearish overall.

On top of that, the gold markets certainly are doing no favors for the Australian dollar.

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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