Asian traders will focus on the movement of the Australian dollar currency in the near term ahead of important data to be published.
On Wednesday, Australia's consumer price index (CPI) data will be published with inflation forecast to increase from 4.9% to 5.2%.
This is likely to prompt the central bank to tighten monetary policy either by raising interest rates, in an effort to prevent further price increases.
The Reserve Bank of Australia (RBA) at the latest meeting has kept interest rates at 4.10%. However, if the CPI rises, will the central bank raise interest rates again?
While assessing the next move on monetary policy, investors continue to watch technical indicators on the chart of the AUD/USD currency pair.
Compared to the US dollar, the AUD currency is seen moving in a horizontal zone between the height range of 0.65000 and support at 0.63600.
After showing an increase in the movement pattern at the end of last week, the price showed a decrease again at the beginning of this week in addition to the strengthening factor of the US dollar which pressured the price down.
Continuing today's trade (Tuesday), the price hovering around 0.64200 is seen to be below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the AUD/USD chart, signaling that the bearish movement will continue.
The expectation of a further drop in price will retest the 0.63600 support zone, which was an important support for the price in early trading last September.
If the zone is successfully breached, the price will sink deeper with the latest target moving to around 0.63000.
Meanwhile, to predict if the price increase happens anyway, breaking the MA50 barrier will see the price test the height last Friday around 0.64600.
Next, the price that managed to continue rising higher is expected to reach 0.65000, which is the resistance zone reached last week before the price plunge has occurred.
