Market sentiment is seen as still mixed. There are signs that the market is recovering, but several factors are still worrying investors, especially the second wave of Covid-19.
Previously traded commodity currencies declined again showing signs of revaluation in the market especially the Australian dollar.
Ahead of Australia’s central bank policy meeting in early October, analysts at Citigroup believe the Reserve Bank of Australia (RBA) will continue to maintain unchanged interest rates and will not implement negative interest rates.
A similar reaction occurred on the Pound yesterday, the Aussie dollar is also expected to experience an increase this week.
Chinese economic data to be published in the Asian session on Wednesday will also affect Aussie trade.
The price movement on the AUD / USD currency chart has already started showing an early pattern of bullish after the price tested the support zone near the 0.70000 level last weekend.
Trading earlier this week saw a horizontal move but showed a move after moving above the Moving Average 50 (MA50) support level on the 1-hour price movement on the AUD / USD chart.
Continuing in the Asian session this morning, the price has managed to break the level of 0.70800 which was seen as the SBR zone (support become resistance) previously.
In anticipation of a trend change, a higher price increase is expected to lead to the SBR zone around 0.71800. Next, the focus zone is at 0.72400.
However, if the price moves backward, the 0.70000 support zone will be tested again and is likely to break even further.
