The Australian dollar this morning sits at 0.9020, 121 points lower that the high of the day yesterday at 0.9141 before the disappointing GDP data was released.
As you can see in the chart below, (15 minute candlesticks), at least half of the fall happened in the immediate aftermath of this data.
But that didn’t stop global investors abandoning the Aussie until it slipped below 90 cents overnight.
If we we look up from the microscope to the daily chart of the last few months, it is also evident in the size of the daily bar yesterday how aggressive the selling was, hitting a low of 0.8995 overnight.
It all adds up to a pretty poor technical outlook for the Aussie dollar and many technicians are still aiming for a completion of the head and shoulder pattern with a retest of the 0.8840/60 low from August.
RBA Governor Stevens wants the Aussie lower – he will be pleased.