Commodity currencies have been mixed over the past few weeks, with a particular deteriorating technical setup and growing risk of a deeper corrective phase on the AUD and its crosses. “This is in line with the recent failure against important resistance in the 1.06/1.0650 zone for AUDUSD which includes the August-September highs (and potential double top)”, wrote analyst Niall O'Connor, observing a current attempt to hold the key 1.0167 September low, “which should define the short term range lows”. O'Connor expects the AUD/USD to stay below 1.0405/1.0475, with intact short term downside risks, while a drop below 1.0167 would confirm a deeper corrective phase into the 0.9975/0.9825 zone (61.8% and 76.4% retracements from the June low). “We would expect prices to base in this area given our view that the medium term consolidation phase remains very much intact”, he added.