Commodity currencies continued to depreciate until the end of this week's trading as market sentiment risks adding pressure.
Market -risk sentiment continued to favor the strengthening US dollar and dampened the movement of other major currencies in the market.
Western sanctions on China, the spread of the virus are on the rise in Europe and several other issues affecting the market are making investors turn away from risky assets.
The Australian dollar slipped to a 7 -week low against the US dollar after making a decline from a high of 0.77500 earlier in the week as shown on the AUD/USD price chart.
The price remains below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame of the price movement for a bearish trend for today’s lower downside expectations.
As of Wednesday’s trading yesterday, the decline was supported at the 0.75800 zone and until continuing into the Asian session on Thursday for the price to continue hunting the latest monthly lows.
The continued lower decline is expected to head around the 0.75000 zone which has been the price support zone in last December trading.
The 0.74000 level will be the latest target destination if the bearish momentum continues.
If the price rebounds beyond the MA50 barrier, investors will likely be prepared for a price trend change situation.
The price increase will test the level of 0.76500 which is seen as the SBR zone (support become resistance) before the higher rise leads to the high level at the beginning of the week around 0.77500 again.
