After a wild trip, the dollar strengthened even after the US CPI report was declining sharply. More negative sentiment persists to this day and this is weighing on commodity currencies Australia is down 0.8% against the US dollar to 0.6900.
This suggests that sellers should strengthen the breakout below the original 0.7000 mark and leave more room for worse search. The next key to look at is the support level 50.0 retracement level The outbreak is high @ 0.6757. Beyond that, the 0.6500 level is arguably the next key psychological level for couples.
If you only go technically, it looks like the bleeding may continue for a while.
Although bond yields are declining from their recent highs, it looks like a mix of flows and this will be difficult to determine until the dust settles in the coming months.
Now, as one might think, it does not hurt the dollar, but the feeling behind the greenback is that the stock is declining and in my opinion the weak Chinese yuan is helping. The latter does not provide much support for Auss, so check it out below.