Plunge Below 0.7200, AUD / USD Latest 6 Week Lowest Record

 The Australian dollar depreciated further on the Asian session this morning after being affected by risky market sentiment since the beginning of the week.


Adding to the pressure was when the Deputy Governor of the Australian central bank also gave a signal to consider intervention as well as negative interest rates in a policy setting.


In addition, concerns over the Australian economy were also a factor in the depreciation of the Aussie dollar by the second wave of the Coronavirus.


Price movements on the AUD / USD pair chart continued to decline further in today's Asian session above the support level of 0.71800.


The decline followed a daily dip of 120 pips earlier in the week as market risk sentiment put pressure on commodity currencies.


The price moved slowly at the beginning of the Asian session hovering below the level of 0.71800 which is the SBR (support become resistance) zone before continuing to fall lower recording the latest low of 6 weeks.


A lower decline is expected to hit the support level of 0.70800 tested in July and August trading.



However, be wary of changing sentiment in the market which is likely to see a resurgence in price.


The price increase will pass the SBR zone 0.71800 again and lead to the resistance level around 0.72400.