Following the risks that peaked at the opening of trading earlier this week, the Australian dollar (AUD) currency has fallen lower to record a 2-year low against the US dollar.
Market risk-off sentiment has been fueled by the Crimea Bridge bombing which led to Russia launching missile attacks on major Ukrainian cities targeting critical infrastructure.
In addition, concerns are growing in China as the world's second largest economy following reports of partial closures in several districts of Shanghai to curb the spread of the coronavirus.
The Australian dollar has started to show a bearish pattern in the past week after an interest rate hike by the central bank fell short of expectations.
The Reserve Bank of Australia (RBA) at its latest policy meeting has increased interest rates by 25 basis points from 2.35% to 2.60%, lower than expectations for an increase of 50 basis points to 2.85%.
Markets judging the RBA's more dovish approach of slowing rate hikes have seen the Aussie dollar trade lower.
On the AUD/USD currency pair chart, the price has shown a decline from the 0.65400 resistance zone back to the 0.63700 support zone at the end of the week.
Continuing trading at the beginning of this week on Monday yesterday, the price that started trading at the 0.63700 zone has recorded a daily decline of around 100 pips to a level around 0.62800.
The decline continued in the Asian session today (Tuesday) to a level around 0.62500 to continue to record the lowest level since April 2020.
The price movement is still evaluated in a bearish trend where the price remains moving below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the AUD/USD chart.
If the price makes a move lower, the next target level is seen around 0.62000 for another recent record low.
However, if there is a price increase again, the 0.63700 zone is seen to be a resistance for the price that needs to be tested before signaling a change in the price trend.
A further move higher is likely to retarget at last week's resistance zone around 0.65400.
