AUDUSD is recovering from yesterday's sell...>

AUSSIE: AUDUSD is recovering from yesterday's sell off, rising to 0.7072

currently as some stability returns to global equity markets. That said, the

downtrend remains firmly intact and a rally above yesterday's highs at 0.7131

would been needed to improve the outlook and target the 0.7200 resistance area.

Below 0.7200 the bears have the advantage. 

The biggest risk to the Aussie comes from further global equity declines that

would lead to a drop in USDJPY, undermining AUDJPY. After losing its grip on the

80 level yesterday, AUDJPY dropped below 79.50 where it remains. A drop below

the Sep 7 low at 78.69 would likely trigger further selling. 

- AUDEUR took another fall yesterday as the euro held up, seeing the pair test

its recent lows at 0.6114. The recovery has been shallow keeping the focus lower

with any break below yesterday's low likely to trigger further declines.