AUD/USD wipes out four days of gains
The Australian dollar had a good thing going earlier this week as it rebounded from a 20-month low in four straight days of solid gains.
But downtrends are downtrends for a reason and betting against them is unwise. That rule of thumb once again proved to be true today in a 103 pips decline to 0.7245.
The drop today highlights how dismal look of the longer term chart, which has been in decline since hitting parity in 2011.
AUD/USD monthly:
The bigger deal for me is fundamentals.
It was a double-whammy of political and fundamental hurt for the Aussie today. The Prime Minister is fighting for his lift while China has promised to retaliate after Australian blocked Chinese companies from building out the 5G network.
That's the kind of pain that lasts more than a day.
