The AUD/USD had a weak day on Thursday as traders are starting to sell the "risk on" trade in reaction to the various debt issues that continue to haunt the markets. The Aussie is most certainly a strong currency, so we are looking at this as an opportunity to perhaps buy the Aussie at a discount as the 1.09 and certainly the 1.08 levels should be supportive.
The AUD/SGD pair has recently broken out of a downward channel, and did so in dramatic fashion as the channel gave way to a massive move a few days ago. As the AUD/USD falls, so should the AUD/SGD. This is because the SGD has historically been pegged to the USD. If it does, look for the previous downtrend line in the channel to perhaps act as support.
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