The Australian dollar suffered a severe 'bleed' last week when its value plummeted to a 3-week low.
However, there is a chance for the currency to strengthen again this week with the expectation of an interest rate hike by Australia's central bank.
After the previous policy meeting saw interest rates on hold, the Reserve Bank of Australia (RBA) is expected to raise interest rates by 25 basis points to 4.35%.
If you look at the chart of the AUD/USD currency pair last week, the price dropped after the reaction to the Australian inflation data was published.
Then the price managed to rise again to the level of 0.68200 after the FOMC meeting ended, but then it plunged after the US dollar strengthened again.
Driven by the release of economic growth data from the United States (US) which supports policy tightening measures by the Federal Reserve (Fed), the US dollar has pushed the Aussie dollar down until the end of the week.
On Friday, the price dropped below the 0.67000 level and finally touched the 0.66250 level to record a new 3-week low.
However, after bouncing back slightly at the close of last week's trade, the price resumed a slight increase at the opening of the week towards the 0.67000 level.
The price movement will test the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the AUD/USD chart to give a reaction for further movement indicators.
If prices bounce back to resume last week's decline, the lows hit last Friday will likely attempt to break through.
Next, the price will continue its decline towards the lower support zone which is around 0.65400.
However, if the price crosses 0.67000 and the MA50 barrier, it will be a sign for a bullish trend movement for the price.
The upside could lead to several focus zones including 0.67500 and last week's 0.68200 high.
