Australian dollar falls to begin the week

The Australian dollar has fallen a bit during the trading session on Monday, reaching down towards the 0.75 handle. That’s an area that has a certain amount of psychological importance to it obviously, but I also think that if we can make a fresh, new low, that could send this market much higher, perhaps down to the 0.7250 level. I have a hard time thinking about buying this market, because quite frankly it’s obvious that we have so much in the way of negative pressure, and of course the US dollar is one of the strongest currencies in the world right now. I believe that the Australian dollar being a proxy for gold doesn’t help either, and I think that we will continue to see a lot of negativity in the market. With higher interest rates in the United States and makes sense that we would continue to see the US dollar strength in, and of course the Australian dollar fall as gold falls.
I think short-term rallies should be buying opportunities, especially signs of exhaustion. I believe that the market could go down to much lower levels, perhaps even the 0.7250 level, as it is an area that has been important more than once. I think that it’s not until we break above the 0.76 level that we can even entertain the idea of buying this market, perhaps even the 0.77 handle. This is a market that looks as if it is going to unwind going into the summer.