AUD/USD: Barclays initiates short order, aiming for 0.70

Barclays believes that the RBA's moderation in terms of its dovish bias limited the depreciation of the AUD recently, partly because of rising real estate prices.

However, Barclays sees three factors that suggest that the AUD will remain under pressure and it just went short on the AUD/USD.

1- The mining sector is beginning to show signs of weakness, eliminating one of the factors that supported the AUD in recent years.

2- The market's perception in terms of the risk surrounding the Australian economy has deteriorated, especially as we are not very far from a rate hike by the Fed.

3- The AUD is still under pressure due to declining commodity demand from China (its largest trading partner) is slowing.

Barclays entered into a bearish trade at 0.7779 with a target of 0.70 and a stop loss at 0.8180.