AUD/USD has finally taken the stairs lower during the European morning as the negative tone left over from the Asia session was enough to get the bears going once the price broke below the 0.9940 support. Negative US and European headlines and the bond markets again trading weaker with the assistance of the ECB needed to fill the gaps has seen risk off trading with the commodity and commodity related currencies being effected most. Buying ahead of 0.9800 has stopped the decline with the bounce seen in the Euro most likely saving the day for the AUD.
Since the bottom the pair has hung around the level with small bounces limited to 0.9875 as caught longs bail on rallies. There is a lack of Asia zone data with Australia having none which should ensure the AUD remains offered today.
Also helping the bears will be the news wires talking about the state of the US economy and the effects the super committee will have if they continue to be unable to find spending cuts. Below 0.9800 will be the interbank markets target whilst the pair remains heavy.

Compass Direction

Short-Term    Medium-Term

NEUTRAL        BEARISH

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