AUD/USD: Aussie struggles to get off the floor
The aussie has had a wild last few sessions as it rebounded from a low near 0.5500 back towards 0.6000 and is now falling back off again amid the risk-off mood in the market.
The dollar continues to be the only trade that is working in the market and those flows are self-reinforcing, keeping the greenback underpinned.
The fact that the market continues to experience a massive meltdown isn't helping sentiment in the aussie and is pressuring the pair to the downside to start the week.
For AUD/USD, the key for buyers is to try and keep a break above the 100-hour moving average at 0.5866 in an effort to break back above 0.6000.
However, the fundamentals and market sentiment aren't quite working in the aussie's favour for now and that is the major reason why the currency can't get off the floor.
The pair may be consolidating losses for now but unless the near-term technical picture changes, it feels like it will only be a matter of time before we revisit the lows near 0.5500 once again.