The Australian dollar got a double boost in trading yesterday but that is ultimately proving to be short-lived as the currency declines further again today. Against the dollar, AUD/USD traded to a high of 0.6846 yesterday but is now down nearly 100 pips from there to 0.6747 currently.

From a technical standpoint, yesterday’s gains were nothing significant as key resistance in the pair continues to sit closer towards the June highs near 0.6900. That was what helped to stop the strong push higher earlier this month as well.

Considering the latest downdraft, sellers look to continue the corrective move lower and the next target will be the 200-day moving average (blue line) at 0.6716 before looking at the 100-day moving average (red line) at 0.6685 at the moment.

This article was written by Justin Low at www.forexlive.com.