Aussie Dollar versus the AUD/USD

AUD/USD has taken a dive to start this week with the largest single-day loss in a month and the steepest three-day plunge since December 2016.

In the process of this collapse, the pair has tentatively fallen through a trendline floor that has guided the pair generally higher since the beginning of 2016. The speculative implications are clear.

However, is this a case of the Aussie Dollar falling apart, the swell from the Greenback or a mix of the two? If you look at the AUD's general performance, the currency was lower against most Monday (the exception being the Yen), but its progress was far more measured and there weren't any other critical technical milestones. 

AUD/USD commands considerable authority over the crosses owing to its liquidity, but there is no guarantee that the Greenback can offer sustained momentum. Perhaps the 1Q CPI update coming up can change that mix, but that is a big 'if'.

Australian shares started the week in a chippier mood with gains on Monday and looks poised to open higher, with futures pointing to the index adding 8 points at the open.  

Prices have found their way higher as earlier Aussie Dollar depreciation factored into calculations while the economy perked up, with PMI surveys pointing to robust momentum in manufacturing- and service-sector activity growth.