Since September 2014 AUDUSD dropped around 900 pips and the pair is currently at 0.8500 level but there is still lot of room for this pair to drop towards 0.8300 level or even further down towards 0.8050 level.

Beside technical reason, there are fundamental aspects which support continuation of bearish price action on AUDUSD as RBA thinks that despite the recent decline on this pair the AUD remains above most estimates of its fundamental value, particularly given the further declines in key commodity prices in recent months. It is offering less assistance than would normally be expected in achieving balanced growth in the economy.

TARGET: 0.8300

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