Closely correlated to the S&P 500 VIX Index, and trader sentiment in general, the Australian Dollar remains vulnerable to a broader reversal, and could follow the return of volatility. This bearish scenario for AUD price action appears increasingly likely as complacency builds and market participants refuse to acknowledge progressively woeful economic data. If FX volatility ebbs further, however, the Australian Dollar might continue its recent ascent. Though this seems unlikely for now in light of the latest China tariff threat from Trump. Moreover, the technical backdrop for AUD/USD and AUD/JPY paint bleak pictures for Australian Dollar outlook