The AUD/USD pair fell hard during the course of the day on Friday, testing the 0.8650 level. That level opens the door to fall the way down to the 0.85 level, and we think that in fact will happen. Rallies between now and then will be selling opportunities as we believe the 0.88 level will be resistance. Even if we get above the 0.88 level, is not until we get above the 0.9050 level that we are comfortable buying. The gold markets falling so drastically certainly haven’t done anything to help the value of the Australian dollar.
