The outstanding performance of the Australian dollar last week came back to a dismal end following pressure on concerns over the risk of transmission of the Omicron coronavirus variant.
In addition to the positive market sentiment last week, the Australian dollar was also supported by the release of a strong Australian employment data report for November with 366,100 job growth higher than expectations of 203,000 and the unemployment rate falling to 4.6% from 5.2%.
With the depreciation exhibited by the US dollar has also opened up room for the Aussie dollar to record a rise to a 3 -week high.
Examining the price movement on the chart of the AUD/USD currency pair, the price has surged from the support zone of 0.71000 to almost reaching the high level of 0.72200 last Thursday.
Still, a return to disappointment for Aussie investors as prices plunged again on Friday following rising Omicron concerns over the weekend made investors move to safer markets.
Continuing until the opening of trading earlier this week, the price continued its decline to the support zone of 0.71000 to assess whether the zone is able to support the rise again like last week.
If market sentiment remains risky, investors will expect a lower drop in prices with the target heading towards the key support zone at 0.70000.
On the other hand if the price manages to get the bullish rhythm back, the resistance level around 0.71800 becomes the initial focus level to test.
The continued rise will test the 0.712000 resistance zone reached on last week's rise.
