Aussie falls against greenback during Tuesday session

The Australian dollar has broken down over the last couple of sessions, and of course Tuesday was more of the same. It looks as if the 0.7450 level is trying to offer a bit of support, but I think that any rally towards the 0.75 level will probably continue to show signs of resistance as it was previous support. I think a bounce from here is likely to attract a lot of selling pressure near the 0.75 handle, as it will attract a lot of attention due to the large come around, psychologically significant nature of the number.

Alternately, if we break down below the 0.7450 level, I think the market will probably drop down to the 0.74 level. US dollar strength is a main driver of currency markets over the last couple of sessions, and it appears that will continue to be the case. I believe that the market will continue to be noisy obviously, and of course will be influenced by what happens in the Gold markets. It looks as if the Federal Reserve is on track to continue to raise interest rates, so it makes sense that the US dollar should continue to strengthen overall. I think that we are going to see a lot of US dollar strength during the summer, and this is just the latest move that we have seen. I think that the market will eventually aim for the 0.7350 level underneath.