Talking Points:
• Persistent selling in Aussie Dollar has pushed AUDUSD and AUDJPY to extreme 7-straight day declines
• With the extended tumble, the traditional fundamental drivers don't seem to lend the same intensity
• After mature moves and questionable fundamental motivation, many of AUD crosses are facing major support
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The Australian Dollar has been unloved by the FX market these past few weeks. Pairs like AUDUSD and AUDJPY have dropped an exceptional 7 consecutive trading days - for the latter, that is the first time in a decade. Such broad and persistent selling indicates a meaningful unwinding, but how far will the drive extend. Looking to the traditional motivators, there is a distinct divergence from traditional economic updates and direct commodity correlations. Interest rate expectations have certainly dropped, but this theme hasn't been pressed lately. Structural repositioning can account for the move, but will that outflow ignore major technical levels? With key support showing up on AUDUSD, AUDJPY, AUDCAD and other Aussie pairs; there is a broad opportunity for the currency - break and extend mature trends or rebound on consolidation? We focus on the Aussie in today's Strategy Video.
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