Risky market sentiment earlier this week put pressure on trading in commodity currencies such as the Australian dollar and the New Zealand dollar.
Additionally, Chinese economic data published during the Asian session this morning including data on industrial production and retail sales recorded declining readings.
Development of Covid-19
While the US dollar was seen moving slowly at the market opening earlier in the week despite the market risk-off sentiment usually giving an advantage to the US dollar as a safe-haven currency.
Still, disappointing US retail sales data over the weekend were seen to still put pressure on the US dollar.
If observed on the chart of the AUD/USD currency pair last week, the price that slipped below the level of 0.77000 rebounded again at the weekend closing the trade around 0.77800.
The rally has also re -crossed the Moving Average 50 (MA50) barrier level on the 1 -hour time frame of price movement for the bullish trend signal.
Trading that continued in the Asian session this morning slightly declined still hovering above the MA50 level which will support the price to continue the rise again.
The resistance zone at 0.78300 will be tested for the price to continue rising higher and try to overcome the high level reached last week around 0.78900.
The next high target level is seen at the price of 0.8000 which is the price resistance level reached in last February trading.
If the price falls lower, the price support level is around 0.76500 which is the previous RBS (resistance become support) zone.
The next lower decline could head back up to the support zone 0.75700-0.75300.
For the Aussie dollar, the Australian jobs data report will be the focus of investors this week which is seen to affect the currency.
