Forex: AUD/USD extends decline below 1.0400

FXstreet.com (Córdoba) - Currencies linked to commodities are underperforming on Monday as markets turn cautious, with the USD trading broadly higher in the FX space. AUDUSD has continued to move south, and today it broke below the 1.0400 mark to hit its lowest in nearly a month at 1.0382.

According to the TD Securities team, extreme positioning suggests long liquidation likely added to the intensity of the AUD selloff at the end of the week and those forces have likely still been contributing to the AUD pressure overnight. "The December lows near 1.0345/50 are the clearest important AUDUSD support below spot", they add.

At time of writing, AUDUSD is trading at the 1.0395 area, where it records a 0.2% loss on the day.