Although the major Wall Street market indexes showed improvement, investors still rated market sentiment as risky with concerns still focused on the spread of Covid-19 infection with the emergence of the latest variants.
In a risk-off sentiment situation over the weekend, high-yielding currencies such as the Australian dollar continued to receive negative temps displaying a declining performance in the market.
When compared to the US dollar, the Aussie dollar rebounded after the US dollar strengthened following the US producer price index data published with better -than -expected readings.
Observing the price movement on the AUD/USD currency pair chart, it can be seen that the price spike took place last Wednesday following the depreciation of the US dollar with the published consumer price index data weak, giving room for the Aussie dollar to rise.
The rise, however, failed to last long before prices eased again in Thursday's trading.
After reaching a rise to the level around 0.73900, the price displayed a re -decline of around 60 pips to the lower level.
After declining again below the Moving Average 50 (MA50) resistance level on the 1 -hour time frame for a bearish movement signal, the price is seen again hovering around the support zone of 0.73300 until continuing on Friday trading.
The lower decline is expected towards the 0.73000 support zone to record the latest 3 -week low.
On the other hand if the price manages to rebound, the weekly high level at 0.739000 will be tested before the price heads to the resistance zone at 0.74000.
The 0.74000 level is the SBR (support become resistance) zone that remains to prevent the price from rising past it for 4 consecutive weeks until this week.
