AUD/USD edges below 0.6400

Despite the mounting concerns over the Chinese economy, the Australian dollar had been performing quite well in relative terms. Much of that would seem to rest with gains in the AUD/JPY. Of course most of that has been driven by the USD/JPY (which has now risen above 149 for the first time this year). That dynamic has kept the downside in check for the AUD/USD to some extent. However, the push higher in the dollar more generally has now seen the AUD/USD dip below the 0.6400 handle again. The AUD/USD closed in the US last night at 0.6424. It has not long ago set a new low on the week, at 0.6396. The risk of a deeper fall below 0.6350 would therefore appear to have come right back on the radar now. The AUD/USD is currently trading at 0.6397