Today's Asian session (Thursday) saw the depreciation of the Australian dollar before the Australian employment report for September was published.
Australian central bank (RBA) governor Philip Lowe has warned of lowering interest rates to 10 basis points as well as increasing policy easing in an effort to support Australian economic activity.
He also stated that interest rates are not expected to increase for at least 3 years.
Australia's employment report saw the economy lose jobs by up to 29,500 lower than expected to decline -38,000. While the unemployment rate rose to 6.9% lower than expected 7.0%.
Also put pressure on Aussie trade as China's annual inflation data for September recorded a downward reading. In addition to being affected by its largest trading partner economy, relations between Australia and China were also seen to be poor after the issue of coal import restrictions.
As can be seen on the AUD / USD pair chart, the price moving below the level of 0.71700 has plunged at the beginning of today's Asian session following the depreciation of the Aussie dollar.
Prices that are below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement still signal the bearish trend on the AUD / USD chart.
With the pressure on the Aussie currency, the price is expected to fall lower towards the RBS zone (resistance become support) around 0.70800.
And the lower decline could reach up to the major support zone at 0.70000.
On the other hand, if there is a change in the price trend again, the SBR zone (support become resistance) 0.71800 will be re-tested as well as the dynamic barrier level of MA50.
A higher rise will be expected to the next level of 0.72000 to the resistance level of 0.72400.
