The AUD/USD has seen increasing correlation with Chinese equities, as the peak in Shanghai index corresponded with a double top in the Aussie. The last two week have seen development in China driving financial markets, while the Aussie has correlated less with the S&P 500. As long as China remain pressured, there is further downside risk for the pair. That depends on the risk off theme extending into next week and maybe beyond. As long as China remain pressured, then I am not a fan of the Aussie. If the AUD/USD holds its break through the 200-daily ema than it opens up a further downside risk for the pair. That ... (full story)