AUD/USD on free-fall since RBA Stevens, watch for a 0.90 break

AUD/USD on free-fall since RBA Stevens, watch for a 0.90 break

FXstreet.com (Barcelona) - AUD/USD has been hammered once again in early Asia, taking the rate as low as 0.9020 from 0.9060 NY close, following the 'major clues' provided by RBA Stevens about a forthcoming rate cut in Australia next August 6th.

According to Alp Kocak, Strategist at DailyForex.com: "Simply put, if the pair can get a daily close below 0.90, it may absolutely crater. In fact, this could be one of the better trades for the month of August, and possibly even the rest of the year", adding that "I will not be shorting this until we get a daily close below 0.90, but when we do I will be all in."

Kocak thinks that "unless there is something seriously amiss, it doesn’t seem likely AUD is going to be particularly strong in August 2013." He adds that a "dead cat bounce" is always a possibility, but if so, "this may only create a selling opportunity" Kocak said.

Kocak's bearish view is very much in line with broader market consensus, which sees the AUD still caught in the crossfire of a 'perfect bearish storm', with the main drivers being China, Fed taper talk, and undoubtedly, a very dovish RBA.