AUD, CAD, NZD, NOK: Barclays believes the "commodity currencies" will keep dropping

Growing concerns about the Chinese economy leave little time for the forex to consolidate following the agreement reached with Greece, notes Barclays.

"One source of anxiety has been replaced by another. Following the sharp decline in the Chinese stock market in June and July, Chinese economic activity indicators have started to deteriorate and expectations have entered contraction territory."

"Prices of raw materials and the AUD, NZD, CAD and NOK currencies have fallen sharply in recent months. We continue to anticipate the decline of these currencies. We recommend selling AUD/USD with 0.70 as a target."

Barclays sold this pair at 0.7779 with a stop loss at 0.8180 and a take profit at 0.70.