The Australian dollar moved weaker along with other commodity currencies in the market earlier this week due to re-emerging tensions between the United States (US) and China.
Last week, several Chinese companies reportedly were delisted on the NYSE exchange but the action was reversed. These factors are seen to have the potential to provoke further disputes between the two largest economies in the world.
Not only that, Donald Trump has also signed an executive order to block all transactions on applications from China such as Alipay and WeChat pay.
Sentiment that is risky and involves China often tempts the Australian dollar because China is Australia's main trading partner.
On the AUD / USD currency pair chart, the price showed a decline yesterday after the horizontal movement of the price below the resistance 0.78200 at the end of last week.
Gives a bearish trend signal when the price moves below the Moving Average 50 (MA50) barrier level in the 1 hour time frame of the price movement until yesterday's daily decline around 90 pips.
The horizontal movement of prices is seen to continue on Tuesday with a slight rise in the European session to test the MA50 barrier with the expectation of a daily downturn to happen again.
A lower drop will lead to the 0.76500 level to test the RBS (resistance become support) zone before reaching the lower level at 0.75700.
However, if the price manages to pass the MA50 barrier, the SBR zone (support become resistance) 0.77400 will be tested to signal a trend change.
A higher rise will re-test the 0.78200 resistance zone reached last week and also the highest level recorded since March 2018.
