The Aussie dollar got crushed today

The Aussie dollar is under pressure again this afternoon as the twin headwinds of weaker gold and copper combined with a weak Chinese “flash” PMI to knock it lower.

It’s currently sitting at 0.7290, off the low of 0.7270 over the past hour.

AUDUSD Hourly (Go Markets, MT4)

That’s another new six year low. But unlike many of the other lows we’ve seen over the past few weeks this one might be important.

The 0.7270 region is the level that capped the Aussie’s rally as it tried to recover after crashing down to 0.5960 during the GFC. It’s the blue line in the hourly chart above and the weekly chart below.

AUDUSD Weekly (Go Markets, MT4)

If that level breaks then many traders may begin to focus on a full retracement of the move from 0.5960 in 2008 to the 1.1080 high in 2011. That would mean a move into the low 60 cent region.

For now, however, both Westpac and the ANZ reckon that most of the bad news is baked into the cake for the Aussie dollar. But it’s on the mat again today.

Little wonder both banks said the bias was still lower.

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