Commodity currencies traded lower in the Asian session today as markets remained cautious after market risk-off sentiment earlier in the week following reports Turkish President Tayyip Erdogan had sacked the central bank governor.
The US dollar, however, was seen as failing to maintain its strength following the re -decline in US bond yields from a 14 -month high reached previously.
The Australian dollar was seen declining significantly throughout the Asian session today as trading resumed early in the European session.
The pressure on the Aussie dollar is also likely to be driven by the factor of sanctions on Chinese officials by the US, Canada, the UK and Europe over the issue of human rights abuses of the Uighur Muslim community.
As can be seen the price on the chart of the AUD/USD currency pair, the price failed to pass the level of 0.77500 before moving below the Moving Average 50 (MA50) barrier level on the 1 hour time frame for a bearish trend signal.
The decline is heading to the level of 0.76700 to test the support zone with the expectation that the price will continue to decline lower.
The continued decline is expected to be around 0.75700 which is the price support level in last February's trading.
If the price returns to show a rebound, investors will pay attention to the price reaction on the previous focus zone around 0.77500 and also the resistance of 0.78300.
The decline is expected to be lower if the US dollar strengthens again and adds pressure on Aussie dollar trading.
