The Australian dollar showed a sharp decline in today's Asian session against other major currencies after a horizontal move earlier in the week wiped out consolidation last week.
A major factor in the pressure on the Aussie dollar trade was reports that China had stopped importing coal from Australia, further strained relations between the two countries.
With market sentiment back at risk in the Asian session, the Aussie dollar recorded a significant devaluation while the US dollar once again showed strengthening.
On the price chart for the AUD / USD pair, the price moved slowly during the week's trading and was lower than the resistance level of 0.72400 reached at the end of last week's trading.
In today's Asian session, the price is moving below the Moving Average 50 (MA50) barrier level on the 1 hour time frame which indicates a bearish price trend.
A significant drop of over 40 pips to the level of 0.71650 before the price moved slowly again and rose slightly to the level around 0.71800 continued in the European session trading.
If the decline continues, the RBS zone (resistance become support) at 0.70800 will be the next price target.
On the other hand, the price is expected to rise to the resistance level of 0.72400 again if the US dollar returns to weak trading.
Current market sentiment will continue to be monitored along with the development of the United States (US) economic stimulus package which will affect market movements.
