AUD/USD breaks May low
AUD/USD is down a half-cent and has broken below the May low. That puts it at a four-month low of 0.6952.
Given the backdrop of intense risk aversion, the Australian dollar has held up relatively well. The thinking is that there are some benefits to Australia in terms of trade as China and the US cut each other off. Those are outweighed by the slowdown in global growth but the calculus is tricky.
Technically the picture is more negative. The fall to a fresh low continues to the pattern of lower lows and highlights the potential for a decline all the way down to the January lows.
