In trading on Tuesday, commodity currencies were seen moving weakly in the Asian session while the US dollar showed a strengthening driven by gains in US treasury yields.
After last week’s decline, US treasury yields rebounded and are getting closer back to the 1.70%level.
The Australian dollar eased lower as economic data from China, its main trading partner, failed to display an encouraging reading published in the Asian session this morning.
While the focus is on US inflation data for US dollar trading, investors are also cautious ahead of the Australian jobs data report to be published on Wednesday for the movement of the Aussie dollar.
The price movement on the AUD/USD pair chart this morning was seen showing a decline after the rise at the beginning of the session tested the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame for a bearish trend signal.
The decline, however, slowed around the 0.76000 level which has been the support level for the price since last week.
If the lower decline continues, the support zone above the 0.75300 level is seen to be the focus level and investors will assess the price reaction in that zone.
However, if the price manages to show a rebound, the resistance zone above the 0.76500 level is seen to be the price zone that needs to be tested.
A higher rise is seen to target the high at 0.77500 which was the resistance on previous trades.
