Formerly optimistic Swiss Franc traders are beginning to realize that the Australian economy cannot support such lofty price levels at this time.
The AUD USD continued its short-term break as traders are becoming more averse to risk since the global equity markets topped late last week. This move could continue to the downside as formerly optimistic traders begin to realize that the Australian economy cannot support such lofty levels at this time.
As long as the Aussie economy remains weak and trader appetite for risk declines, then look for the AUD USD to continue down until it reaches a more realistic valuation area. The charts indicate that this area is between .7266 to .7198.