Widely viewed as a barometer of the health of the global economy, copper has been one of the biggest casualties of growing trade tensions between the U.S. and China.
Its bearish technical outlook points to further falls for the AUD, another gauge of global growth.
Copper has fallen over 21 percent since June 7 and while the AUD/USD depreciation of 6.7 percent in that time frame is not nearly as dramatic, the correlation between copper and the AUD/USD has been consistent.
New York copper is trending lower and is targeting major support around the 2.4500 level.
The 61.8 Fibo of the move from the seven-year low at 1.9365 to the four-year high at 3.2970 on June 7 comes in at 2.4560, while the 2.4500 level held on many occasions in early 2017 when NY copper started to trend higher.
The 2.4500 target on NY copper is about 5 percent lower than its current price and that would roughly translate to another 2 percent fall in the AUD/USD to around 0.7000 if the correlations and proportions remain consistent.