The price of the Australian dollar is falling rapidly after the unreasonable growth in the previous week. Among the reasons for the decline is worth paying attention to the decline in prices for iron ore, which is the main export commodity of the country. Deterioration of macroeconomic indicators as the trade balance, unemployment and consumer confidence also leads to a decrease of the Australian currency. Earlier, the head of the Reserve Bank of Australia announced that investors underestimate the potential for reducing the national currency.
From a technical point of view, the price broke the strong levels and continues to decline, which gives reason to expect continuation of downward momentum with the objectives of 0.91 and 0.89. We recommend holding short positions in the Australian dollar and maintain a medium-term negative outlook.