AUD/USD breaks key support after recent rally

AUD/USD could provide us with a clue of forthcoming price action elsewhere, with the pair dropping through a channel and horizontal support this morning. The release of a record decline in the Westpac consumer sentiment reading certainly didn’t help things.

Nevertheless, with the price having broken from its uptrend, further downside looks likely. The USD is strong today against most other currencies We would need to see a rise back through $0.6445 to bring about a renewed bullish outlook.