Risky market sentiment in last weekend's trading saw the US dollar manage to show a strengthening against most other major currencies in the market, but at the close of the last session saw a re -decline by the US dollar.
The Australian dollar was among those seen to depreciate significantly against the US dollar in last week's trade.
Investors are now vigilant awaiting the outcome of the Australian central bank meeting tomorrow (Tuesday) which is seen to have an impact on the Aussie dollar.
The Reserve Bank of Australia (RBA) is expected to raise interest rates by another 50 basis points at this policy meeting, after making a similar increase at the previous meeting.
Examining the price movement on the AUD/USD currency pair chart, the price has plummeted last Friday with around 140 pips of daily decline recorded hitting around 0.67650.
Reaching that level also recorded the latest low since May 2020 after the price managed to pass the support zone in May at 0.68300.
But at the close of the last trading session last week saw the price rise again from the lows it touched and re -test the 0.68300 zone.
Being the latest resistance on resumed trading earlier this week, the 0.68300 level continues to be tested with gains seen to continue in the European session this afternoon.
The Moving Average 50 (MA50) barrier level on the 1 -hour time frame is also tested which will be evaluated by investors for further movement direction.
If the rise manages to continue past the MA50 barrier, the price will likely head to the focus level of 0.69000 after giving a bullish trend change signal.
The next higher rise is seen to be heading to the level of around 0.7000.
However, if the price fails to continue to rise higher instead of displaying a decline, the lows reached last Friday are likely to be surpassed by the price.
The lower decline is expected to reach around 0.67000 to continue to record the latest 2 -year low.
