There’s no mercy for AUD/USD: the US dollar’s strength across the board is only one reason. The Aussie has its own weaknesses. It seems that even a weak NFP cannot bring AUD/USD above 0.90, which it lost with a big blast. So what is pushing the Aussie lower? PPI fell short: the quarterly release of producer prices certainly has an impact: after a rise of 0.3%, prices rose by only 0.1% in Q2, lower than 0.5% expected. This paves the way for a rate cut – the next item. A rate cut is almost a certainty: according to the markets, a rate cut has very high chances: above 90%. On one hand, the already low exchange rate might deter the RBA from action. But if they don’t cut, the rate will surely jump due to these expectations, and they don’t want that. Happiness from lower exchange rate: RBA member Catherine Tanna said that the drop in the Australian dollar is a boost to resource export returns. Are more drops welcome? Chinese H2 growth looks “grim”: An official Chinese paper said that the outlook for the giant’s economy in the second half looks grim, and the commerce minister said exports look pessimistic. Australia depends on China. Australian government forecasts worsened: Even though the government is nearing elections, it changed the forecasts to the pessimistic side: unemployment is expected to rise to 6.25% (from 5.75%), the budget deficit is expected to rise from 18 to 30 billion dollar and growth is expected to slow from 2.75% to 2.50%. All in all, after AUD/USD consolidated above 0.90 for quite some time, a new wave of pessimism, readiness to sell and some dollar strength pushed the pair to lower ground. The pair reached a bottom of 0.880 so far, but this doesn’t seem like the end. 0.8767 is the next big target, followed by 0.8567. The Aussie is also weakening against other currencies, with EUR/AUD making new highs, AUD/CAD at new lows and even the very close pair AUD/NZD continuing to dig lower. More: AUD/USD: Looking down at the next levels after the big break AUDUSD weekly forecast Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next EUR/USD Aug. 2 – Slides After Draghi’s Comments, Strong Kenny Fisher 9 years There's no mercy for AUD/USD: the US dollar's strength across the board is only one reason. The Aussie has its own weaknesses. It seems that even a weak NFP cannot bring AUD/USD above 0.90, which it lost with a big blast. So what is pushing the Aussie lower? PPI fell short: the quarterly release of producer prices certainly has an impact: after a rise of 0.3%, prices rose by only 0.1% in Q2, lower than 0.5% expected. This paves the way for a rate cut - the next item. A rate cut is almost a certainty: according to the markets,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.