Over the last few trading sessions we have examined the Aussie against the US Dollar in the narrowing channel featured below. The positive US Dollar move today coupled with a 17yr high Australian inflation report, without any rate hike projected by the RBA, has caused the AUD/USD to break the channel and subsequently the .97 handle. Now we notice the AUD/USD continuing to trade weaker toward the .96 short-term support level and the 200 day moving average. It will be interesting to see the markets reaction as the pair approaches this critical level.