The price movement on the AUD/USD chart shows a bearish pattern heading into the end of the week with continued pressure on the Australian dollar.
Australian central bank (RBA) governor Philip Lowe warned of a contraction in the Australian economy in the third quarter and dismissed expectations of interest rate hikes in late 2022 and 2023.
While the US dollar continued to depress the Aussie dollar after showing a decline as US (US) inflation data was published weak in the New York session yesterday.
After the decline in the previous session was seen hovering in the support zone of 0.73300, the price jumped at the beginning of the New York session around 40 pips testing the resistance level of the Moving Average 50 (MA50) but failed to continue higher.
The decline was witnessed again by investors for the price closing the New York session trading lower around 0.73200.
Continuing the Asian session trading this morning (Wednesday), the price continued to decline to the support level of 0.73000 but rose again and hovered above that level until the beginning of the European session.
With the bearish pattern displayed, the bearish trend of the price is expected to be maintained for the price to continue its decline below the support of 0.73000 towards the next focus zone at 0.72500.
However, if the price manages to rebound from the support of 0.73000, a price increase that passes the MA50 barrier will signal a change in the bullish trend.
The resistance zone at 0.74000 will return to the price focus to be tested after the price slipped below that zone since last week.
The Australian jobs data report will be the focus of the Asian session tomorrow (Thursday) which will affect the movement of the Aussie dollar.
