The breakdown in materials bodes ill for the Aussie dollar, this strategist says.
Want to know which way the Australian dollar is headed? Take a look at Shanghai, says MacNeil Curry, head of FX and rates technical strategy for Bank of America Merrill Lynch. "We are seeing some rather negative developments, which bodes quite poorly for the Australian dollar in the course of the next several weeks," he says.
One reason for Curry's concern is the move of the Shanghai Composite Index down through key support levels, he told CNBC's Melissa Lee. China is such an important trading partner for Australia that this is a bearish sign for the Aussie.
Then there is the Continuous Commodity Index, which has also broken through key support levels, according to Curry. With commodities a key part of the Australian economy, "this also bodes poorly for the Aussie dollar," he says.