The Australian dollar has fallen during the trading session on Thursday, as we continue to see risk being taken out of the market. Whether or not this continues is a completely different question, but with the jobs number coming out on Friday it is likely that we will have a bit of a pause in the short term. Given enough time, I do believe that this is a market that will find its footing for a bounce, because quite frankly the Australian dollar has been oversold for a while. That being said, if we break down below the bottom of the hammer from a couple of days ago, this is a market that will more than likely be very noisy and reach towards the 0.70 level. That being said, I would prefer to short this market on a bounce. The fact that the Australian dollar is coming unraveled certainly is difficult to chase.

To the upside, if we can take out the 50 day EMA I might be convinced to start buying, but it is obvious that Australia is going to lag. The commodity markets have been a bit of a mess as of late, so it does make a certain amount of sense that the Aussie would pay the price. With this being the case, I think rallies are to be sold into, and quite frankly I would love to see a strong one at this point. In the short term, I think you have to look towards lower pricing, but I think there are easier ways to buy the US dollar at the moment.