The Australian dollar was the best performing currency on Wednesday yesterday as the US dollar failed to continue its further strengthening.
Market sentiment was restored by the news from China, not related to the Covid-19 issue but the report regarding restrictions on Australian coal imports.
After a 2-year conflict, China is finally considering easing some of its coal import restrictions on Australia.
In the middle of 2020, China acted to block the import of coal as Australia joined other countries in investigating the cause of Covid-19 involving China.
The market sentiment that is seen starting to shift towards risk-on gives an advantage to the Australian dollar in addition to being a factor to relax the strengthening of the US dollar.
Thus, the price on the AUD/USD currency pair chart yesterday showed a daily increase of around 170 pips starting from the 0.67200 level.
The price advance has crossed the resistance zone at 0.68300 and reached a high around 0.68800.
It also signals a trend change when the price increase crosses the Moving Average 50 (MA50) barrier on the 1-hour time frame on the AUD/USD chart.
However, the New York session again saw a pattern of price declines until it continued in today's trading (Thursday) towards the MA50 level again.
The price increase is still expected to continue after yesterday's surge with the target to break through the 0.69000 resistance zone.
Next, the price will head to the latest high of 0.7000 for a 5-month record high.
On the other hand, investors will be cautious if the price breaks back below the MA50 level and is expected to return to the price support zone at 0.67000.
Changes in the bearish price trend will be evaluated before the price is expected to continue its decline to lower levels.
