The Australian dollar belongs to a group of other currencies that also experienced a drop in value in the market when the US dollar returned to pressure with significant strengthening in the New York session yesterday.
In addition to some published data, the producer price index (PPI) of the United States (US) came in with a high figure for February that exceeded forecasts and also showed the biggest increase since August last year.
The reading, which is in line with daily consumer inflation which also increased, has triggered a stronger strengthening of the US dollar.
Thus, it can be observed that the downward movement of the price clearly occurs on the chart of the AUD/USD currency pair.
At the beginning of the week, the 0.65000 level was seen as a support for the price after being tested several times.
However, yesterday's significant price plunge saw the level breached until the price reached around 0.65700.
It becomes a bearish signal when the price moves below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart.
The decline continued in the Asian session this morning (Friday) to the level of 0.65600 before the price began to slowly resume trading at the opening of the European session.
The expected decline will continue to test the concentration zone at 0.65400 and if it breaks lower, the 0.65000 level is seen as the next target to be tested.
However, if there is a rebound, the price will approach the 0.66000 level again to test the important zone after yesterday's decline broke through it.
Passing to a higher level of the zone will signal a change in the bullish trend again for the price.
