We are currently short AUDUSD and see the current level as an opportunity to increase the position with a view to the currency pair breaking the Fibonacci level at around 0.69. AUDUSD is at the key 0.70 psychological level and with no Chinese data to be released and with RBA governor speaking on Thursday we expect downward pressure on the currency pair even through the recent message coming out of the RBA has been "wait and see" regarding further rate cuts. This is largely because the market expects further rate cuts this year due to a slowdown in China, a domestic housing slump, weak consumption and high levels of household debt. This coupled with the odds and aggressiveness of US rate cuts dropping as well as an increase in US China tensions could see AUDUSD falling in the coming months.