The Australian dollar has remained flat since last week with market sentiment being a driving factor for commodities.
At today's Asian session (Tuesday), the Deputy Governor of the Australian central bank (RBA) made an optimistic statement on the Australian economy where he saw the growth of the Australian economy in the third quarter to be positive with the latest Gross Domestic Product (GDP) reading.
He added that the unemployment rate of 6% is seen as a reasonable objective. Victoria's recent downturn has not had much impact on Australia's overall economic growth.
This could be a short-term factor for investors projecting an appreciation of the Australian dollar.
However, it should be reminded again in the discussion of monetary policy in the latest meeting of the central bank. There are expectations for lowered interest rates as well as further policy easing will continue to support economic recovery.
Thus, the long-term effects will lead to the devaluation of the Aussie dollar. In the near future, price movements are likely to be further driven by current market sentiment.
On the price chart for the AUD / USD pair, the price is seen moving flat below the level of 0.71500 since last week with investors also taking precautionary measures ahead of the upcoming US presidential election.
SBR zone (support become resistance) 0.71500-0.71800 is seen as a resistance for the price to continue rising.
If the rise manages to cross the zone, the resistance level at 0.72400 will be the destination of higher price increase.
On the other hand, if the price returns to the downtrend, the nearest support level will be seen at the price of 0.70800 before the downtrend will go to the support zone below the level of 0.70300.
