It appears that investors did not react positively to Australian dollar currency trading in the Asian session following the release of Australian Gross Domestic Product (GDP) growth data as well as gloomy Chinese services sector data.
Australia's GDP growth for the last quarter of 2020 recorded a good figure of 3.1% over the expected decline to 2.5%. However, the figure is slightly lower than the previous quarter reading on the updated reading to 3.4%.
But commodity currencies including the Aussie dollar are seen to be backed up by recovering market sentiment with major Wall Street market indices showing improvement.
Viewed on the AUD / USD currency pair price chart, the price made a significant rise in the European session yesterday after price movements in the previous Asian session were passive following the decision of the Australian central bank policy meeting.
The rise in prices was also supported by the depreciation of the US dollar in the market following recovering market sentiment putting pressure on safe-haven currencies.
The uptrend has managed to cross the resistance zone at 0.78200 after the price moved above the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement signaling a bullish trend change.
If market sentiment remains unchanged, prices may rise again to the high of 0.8000 reached last week.
But prices need stronger momentum to soar to such resistance levels.
On the other hand, if the price returns to the same level as last weekend, the price will test the support level of MA50 and the support zone of 0.77400.
A lower drop could reach back to the support level of 0.76500 to record the latest 3-week low.
