The outlook for the Aussie is started to be quite bearish with the recent rally now considered as a pullback after the initial sharp decline from the beginning of August.
The antipodean currencies are usually highly correlated to the stock indexes and there is no need to remind how far the shares are currently under pressure.
As a result, and given the overall market outlook, we expect further decline on the pair with an immediate target at 1,03 (weekly bollinger band).
Only a break back above 1,0770 (last week high) would alleviate the immediate downside pressure.
Provided by atf-forex-trading.com