The Australian dollar continued to weaken during the Asian session this morning with market sentiment at risk of continuing to put pressure on commodity currency trading.
In addition, added pressure to the Aussie dollar during a speech by the Deputy Governor of the Reserve Bank of Australia (RBA), Guy Debelle, which considered several policy proposals, including central bank intervention (intervention) and negative interest rates.
Concerns over the RBA’s monetary policy shift towards a more dovish direction will have a detrimental effect on the Aussie dollar.
Meanwhile, the US dollar continued to maintain its strengthening momentum until trading continued into today's European session.
On the price chart of the AUD / USD pair, the price has plunged from the high of 0.73200 down again to the Moving Average 50 (MA50) resistance level in the 1 hour time frame of the price movement.
Yesterday's daily decline recorded around 120 pips reaching the 0.72000 support level in yesterday's New York session.
Continuing in the Asian session this morning, the price moving towards the level of 0.72400 in the SBR zone (support become resistance) continues to decline but is still struggling to break the 0.72000 support.
The price drop at the beginning of the European session is expected to drop below the 0.71800 level to record a recent 4-week low.
The price increase is seen to re-test the SBR zone 0.72400 to continue higher. Trend change will be evaluated after the price manages to pass the dynamic barrier level of MA50.
