The Australian dollar continued to come under pressure in trading this week as investors assessed the statement delivered by the governor of the Reserve Bank of Australia (RBA) on Tuesday for further indications of the central bank's monetary policy.
Governor Michele Bullock in her speech at a conference event in Sydney yesterday was seen in a cautious tone for the setting of their monetary policy.
Policymakers are taking a cautious approach while evaluating the latest economic data before making a decision.
The Aussie dollar was seen showing an increase against the US dollar in the Asian session yesterday, but fell back more severely in trades that continued into the following sessions.
Observing the price movement on the chart of the AUD/USD currency pair, the price showed an increase towards the 0.66000 level, but the increase was blocked until then.
Drastic price movements were shown in the New York session when the market was influenced by the published United States (US) inflation data.
The price that tested the 0.66000 level then plunged to touch the 0.65400 level which is seen as a support zone for the price.
The price then moved slowly above that level until it continued into the Asian session this morning (Wednesday).
However, bearish signals are observed by investors as the price is seen to fail to break the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart.
If the price is pressed lower below the 0.65400 level, the decline is likely to continue further towards the 0.65000 concentration zone.
The price will also record the latest 4-week low if bearish trend movements are displayed.
But if the opposite happens, the price increase is seen to continue to test the barrier at 0.66000 which failed to be broken yesterday.
After successfully escaping to a higher level, the price is expected to reach the target of the previous resistance zone around 0.67000.
