AUD/USD: stationed below the key 0.72 handle

AUD/USD is flat today while much of the market is out and not many will be in between now and the New Year, however, that is not to say there will be no action in think trade and liquidity. 

AUD/USD has been in a downtrend on a strong US dollar rallying through key technical points on the DXY charts while the Aussie is now below the physiological 0.72 handle headed towards 0.7144 late May lows. 

Watching for a proper correction in the dollar index - BBH

However, analysts at Brown Brothers Harriman are not so optimistic on the dollar and argued the case for a correction that could slow the momentum in the Aussie's downside and a base on the 0.72 handle would remove downside risks for the meanwhile.

AUD/USD levels

Analysts at Brown Brothers Harriman explained that the Aussie has fallen in seven of the past eight sessions.  "It is down three consecutive weeks and eight of the past 12.  Before the weekend it neared the May/June lows (~$0.7145).  There weekly close below $0.7200 is important because it corresponds to the 61.8% retracement of this year's rally.  A move above there would help to stabilize the tone, but the technical indicators suggest this is unlikely. The next downside target is found around $0.7065."