The aussie slumps further amid the sour risk mood in the market
Europe looks set to be greeted by a sea of red as risk aversion continues to engulf the market for the time being. This is putting added pressure on commodity currencies, with AUD/USD slumping to 0.7613 - its lowest level in a month.
The break of near-term support around 0.7660-66 has accelerated the downside move, with there being little in the way of a test of 0.7600 now.
There is the 61.8 retracement level of the swing higher from 21 December to early January @ 0.7599 to provide some added layer of support in the meantime.
Otherwise, sellers may start to look towards testing daily support closer to 0.7500 next.
It is all about the risk mood now as we look towards the end of the week.
The market is failing to take heart from the Fed yesterday, with meme stocks creating a disconcerting situation whereby investors have to worry about potential future regulation and messy sentiment - as evident by the surge higher in the VIX.
Adding to that is the lackluster reaction by the market to key tech earnings yesterday from the likes of Apple and Facebook. That's not a good sign, all things considered.
