As investors watch out for important data that will be published throughout the week in addition to the FOMC meeting which is the main focus, market developments are also being monitored which affect the current sentiment.
Asian currencies showed a recovery in the trading of the Asian session this morning (Tuesday) with news reports from China that it is rumored to implement stimulus measures in support of its economic recovery.
Chinese banks are also seen intervening in the market to support the Yuan currency by selling US dollar holdings.
Thus, the US dollar currency, which strengthened slightly yesterday following the release of the United States (US) manufacturing and services PMI data which was better than Europe, returned to show further decline in the Asian session this morning.
With positive developments in China, the Australian dollar had the advantage to slightly boost its currency value today.
After a flat price movement throughout Monday yesterday on the chart of the AUD/USD currency pair, a surge in prices began to show in the Asian session just now following the market's reaction to the current market sentiment.
The surging price has crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the AUD/USD chart, triggering an early signal of a potential upward trend change for the price hereafter.
The price increase has reached the 0.67700 level before 'resting' for a while ahead of the opening of the European session market.
If the price increase continues successfully, the price will go to the next concentration zone around 0.68300.
For the upside, the resistance zone at 0.69000 is waiting to be tested by the price after a similar situation occurred in the past few weeks.
However, if the price reverses to make a decline again, the RBS zone (resistance becomes support) 0.67000 is still the target for the price.
If the price breaks lower, the next zone of 0.66300 will be in focus before the continuation of the decline by the price can reach around 0.65400.
