As analysts had expected, price movements on the AUD / USD pair chart closed yesterday trading at the latest 2-week low following the depreciation of the Australian dollar.
Among the factors that put pressure on the Aussie dollar were market sentiment that still remained risky and in addition to pressure from China when acting to restrict Australian coal imports.
In addition, Australian central bank Governor Philip Lowe yesterday signaled lower interest rates and also increased policy easing to support a slower economy.
Meanwhile, the US dollar remained dominant to outperform major currencies in the market with an advantage over risk-off sentiment.
Investors had already seen a significant drop in prices at the beginning of the Asian session on the AUD / USD chart which reacted to the central bank's dovish statement.
The decline continued until the New York session with a daily decline of over 100 pips reaching the 0.70560 level before closing slightly higher around 0.70900.
The Asian session on Friday still saw prices continue to decline but slow price movements tested the RBS zone (resistance become support) below the 0.70800 level.
A lower decline is expected towards the support zone at 0.70000.
However, if the price increases, the Moving Average 50 (MA50) barrier level will signal a bullish trend change if the price manages to break through.
The price increase will return to the SBR zone (support become resistance) up to the level of 0.71800.
