The US dollar traded mixed in the New York session yesterday but showed a slight strengthening to continue trading in the Asian session today (Tuesday).
The factor seen supporting the US dollar is the statement by Federal Reserve (Fed) Governor Michele Bowman who believes that additional interest rate hikes still need to be implemented to lower inflation to the central bank's target level.
Therefore, most major currencies will still receive pressure from the US dollar, but the pressure is not seen as significant as investors are also on guard waiting for the inflation data of the United States (US) to be published for the next indication of the Fed's monetary policy.
As was the case with the Australian dollar, the increase in value displayed at the end of last week's trade was again dampened by the expected strengthening of the US dollar.
If observed on the chart of the AUD/USD currency pair, the price that displayed a bullish pattern at the close of last week shows no signs of continuing.
On the other hand, the price moved horizontally throughout Monday yesterday around the 0.65600 zone in addition to passing through the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart.
A bearish signal was assessed in the Asian session this morning when the price started to move below the MA50 level and dropped to the 0.65400 level.
If the price continues to decline, the latest lows are likely to be recorded with price expectations heading towards around 0.64500 which is the support level tested at the end of last May.
An extended decline lower could reach around 0.63700 for the price's latest record low of the year.
However, if the price rises again, the SBR (support becomes resistance) zone of 0.66300 will be the focus after the rise crosses the barrier at the MA50.
A continued rise could reach the 0.67000 level or the highs at the beginning of last week around 0.67400.
