AUD/USD is down 178 pips, (-1.67%) on the day, trading near the lows, 1.0485.  The move can be characterized as a flight from risky assets, as well as China missing HSBC Flash Manufacturing PMI number overnight.  CNY HSBC Manufacturing PMI 51.1 actual vs. 51.8 previous.

Australian dollar will continue to decline as long as fear of Greek sovereign debt crisis resurfaces.   Australia has a strong correlation with commodities such as, copper, gold, nickel, as well as S&P equities. 

Both oil and copper are down over -3%.  S&P 500 is down 18pts, -1.4%.

The next important level for AUD/USD is 1.0465, the 55 daily SMA.  If we can close below that level then, we will easily get to 1.0360, which happens to be 50% retracement of the move from March 17th low (.9715) to May 2nd high (1.1010).  Levels to sell should be 1.0565 and 1.0590 with targets of 1.04 and 1.02.

See chart below, Source: FXCM.

 width=630