AUD/USD clears a technical hurdle as declines continue

Markets in an angry mood to start the year

AUD/USD made a slow move higher in the quiet period from Dec 16 through the start of the year. That gentle move has had a massive unwind in the past few hours as the market curls up in the fetal position and whimpers softly after China fell 7%.

For AUD/USD, the technical signals are negative after the decline broke the 61.8% retracement of the holiday rally. Support at the Dec 8 low of 0.7169 and the Nov 22 low of 0.7158 also gave way. It's not looking good for the Aussie.

There's a bit of support at the Dec 8 low of 0.7169 and the Nov 22 low of 0.7158 but it's not looking good for the Aussie.