The Australian dollar fell to a 7-week low against the US dollar, breaking through price support at $0.68000, as the US Federal Reserve's (Fed) aggressive stance on inflation and China's renewed Covid-19 restrictions pressured risk-sensitive commodities and currencies.
However, investors are looking forward to the Reserve Bank of Australia's (RBA) policy meeting which is expected to continue raising interest rates by 50 basis points in the Asian session tomorrow (Tuesday).
Judging by last week's NFP report, US job growth rose to 315,000 for August, beating expectations of 295,000, but it was still below the data reading for July, which rose to 526,000.
US manufacturing sector data from the ISM survey will be the focus of tomorrow night's New York session for investor assessment and will also affect the movement of the US dollar.
Assessing the price movement on the chart of the AUD/USD currency pair at the beginning of this week, the price in the Asian session moved horizontally until connecting to the European session, hovering at the 0.67700 support zone.
The price seen moving below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the AUD/USD chart remains a signal for the price to continue the bearish trend movement at the beginning of this week.
If the price decline continues, the 0.67700 support zone will be breached before the price records the latest low again this week.
The target for the latest level for the price drop is seen to be at the 0.67000 zone which was previously the price support zone during the July trade.
On the other hand, if the price manages to rise again, the initial surge past the MA50 barrier level will be evaluated as a signal for a change in the bullish trend before the resistance zone around 0.68400 will become the initial focus for price testing.
A further move higher is seen to test the next resistance at the 0.69000 zone and last week's high at 0.69500.
