The AUD/USD pair broke down during the day on Tuesday, slicing through the 0.78 level. The market looks very bearish at the moment, but there is a lot of noise just below so quite frankly we feel it’s easier to sell the New Zealand dollar than it is the Australian dollar. We believe that the 2 markets will trend together, but the Australian dollar will be much more likely to see fits of support here and there on the way down to the 0.76 handle. While we are bearish, we are on the sidelines in selling the Kiwi instead.
