The Australian dollar’s decline is expected to continue as the health of the United States economy improves. Clive Lambert is looking to short AUDUSD as current levels approach a key resistance level, formed by the currency pair's gap open two weeks ago. Strong US economic data out later this week is expected to serve as a catalyst for further declines in AUDUSD.

On Wednesday, the Reserve Bank of Australia once again stated the Australian dollar is overvalued and the bank may take steps to weaken the currency. The strength of the US dollar has kept the value of the Australian dollar down over the past few months, and this trend is set to continue with investors projecting positive retail sales figures and unemployment numbers out of the US on Friday.

AUDUSD prices jumped to USD 0.8736 overnight and according to Clive if levels go near this level again, an opportunity exists to short AUDUSD. He is looking to place a short at USD 0.8730 with a stop at USD 0.8765. He is targeting a move lower to USD 0.8650 and USD 0.8550.

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