Focus is on Australia's central bank meeting for investors to assess the latest monetary policy decisions.
The Reserve Bank of Australia (RBA) met forecasts by raising interest rates by 25 basis points for the March meeting as it did in the previous month.
In a follow-up statement, the central bank is seen as still focusing on measures to lower inflation to the target level.
However, the market is seen to be interpreting the central bank's less hawkish tone as it expects inflation to have already peaked.
This led to a decline in the value of the Australian dollar in the Asian session this morning despite the increase in interest rates.
If you look at the chart of the AUD/USD currency pair, the price has moved lower on Monday trading yesterday from the 0.67700 level.
Investors are ready for a bearish signal when the price has moved below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the AUD/USD chart.
Also testing the MA50 barrier level in the Asian session this morning, prices then plunged after reacting to the meeting's results.
The price dropped to test the important support level at 0.67000 which has been tested several times in the previous weeks.
If the support level is finally breached this week, the price will continue its downward trend towards around 0.66400.
The next decline will target the 0.65400 focus zone to record a recent 4-month low.
However, if the price manages to bounce back from the 0.67000 level, the high level at the beginning of the week at 0.67700 will be challenged to be broken by the price.
Further, the price is likely to continue its climb back to around 0.68200 and the 0.69000 zone.
