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AUD/USD dips below 0.74 together with the commodity sell-off

The sell off in commodities intensifies and so does the fall of AUD/USD. After the RBA already expressed its desire for a weaker currency and the pair settled on lower ground, another sell off occurred.

And this fall, the pair dropped  and traded in the 0.73 handle. The new low is 0.7397 before the pair bounced back up.

The sell off is not limited to commodities that Australia exports. Also oil is pressured to the downside. Another factor that is partially related is the sell-off in the Chinese stock market. The authorities in Beijing tried to curb the problems in the  Shanghai Composite.

The fall in the Australian dollar and the fall in prices of commodities go hand in hand: when prices are lower, the RBA wants the Aussie to fall, so this is a vicious cycle.


Here is how it looks on the chart. As we are at new lows since 2009 every day, there is little support below. It is almost uncharted territory if we look to the shorter term.

Australian dollar collapse with prices of iron ore other commodities July 8 2015


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.