After last week’s Australian jobs report failed to support a strengthening Aussie dollar, market sentiment that continued to be risky earlier this week added further pressure on the currency.
The worrying outbreak of Covid-19 in Australia has sparked expectations that the Australian central bank (RBA) may have to postpone plans to reduce bond purchases in a bid to further support economic recovery.
While commodity currencies moved weak, the US dollar strengthened with an advantage in a risky market situation.
On the AUD/USD pair chart, the price has made a decline to its latest level this week after passing the support zone of 0.74000.
As of today’s European session (Wednesday), the price has dropped to the 0.73000 level, and this is the lowest price level since November 2020.
The price movement that remains below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame signals that the price will continue to move in a bearish trend.
The next decline will test the levels around 0.72400 and 0.72000, among the levels that were the focus of the last trade of the end of 2020.
If the price moves back above the MA50 barrier, investors will be alert for signals of a reversal of the trend.
The bulls will retest the 0.74000 level in the SBR (support become resistance) zone before signaling the next clearer direction of movement.
