Following the depreciation of the US dollar that was displayed at the opening of trade earlier yesterday, the Australian dollar was a little relieved from continuing to fall after last week's pressure.
However, the relief was only temporary when the currency returned to trade weak again in the Asian session this morning (Tuesday).
Aussie investors are seen taking precautions ahead of the release of Australia's consumer price index (CPI) data tomorrow (Wednesday) to assess the country's current level of inflation.
This data will influence the decision of the next Reserve Bank of Australia (RBA) policy meeting after the meeting in early April saw the central bank keep interest rates unchanged at 3.60%.
Examining the price movement on the chart of the AUD/USD currency pair, the price hovered weakly below the 0.67000 level at the beginning of the week.
After showing a slow increase, the price touching the 0.67000 level bounced back down again in the Asian session this morning.
The price movement which is also back below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the AUD/USD chart also adds a signal for a bearish pattern for the price.
A lower drop if it occurs is expected to head towards around 0.66500 before approaching the support zone on the March trade around 0.65500.
However, if the price movement is driven more by the depreciation of the US dollar, the price still has the potential to show a surge this week.
As for the expected price increase, breaking the barrier at 0.67000 will push the price to test the height zone reached last week at 0.67700.
Next, after the signal turns more bullish, the price will go to the latest high level with the expectation to pass the 0.68000 level.
