AUD/USD: Large stops tripped, more to come

With massive risk aversion in play, the AUD is always going to be the currency that is hurt the most. The break below the 200-day MA and also below the previous pivot at 1.0250 has set off some heavy stop-loss selling from macro accounts.

Dealers expect rallies back towards 1.0250/1.0300 to meet with heavy selling and there are plentiful stops at various levels on the 1.01 and 1.00 handles. If equity markets start collapsing in Asia, these stops are likely to get done very quickly.