The market expects the US dollar to experience a decline after this following the latest indications obtained from Federal Reserve (Fed) Chairman Jerome Powell's dovish tone.
With the US dollar expected to weaken as the Fed appears ready to cut interest rates, other major currencies in the market will take the opportunity to strengthen.
However, the story is different for the Australian dollar currency which is seen to be shrinking in trading today (Tuesday).
There are no recent developments for Australian economic data, but it is likely that the decline of the Aussie dollar is more influenced by the economic decline of China as its main trading partner.
After China's inflation data recorded a decline last week, China's economic growth report earlier this week showing contraction also added pressure on the Aussie dollar.
Therefore, it can be observed that there is a change in price direction on the AUD/USD currency pair chart at the beginning of this week.
In the past week, the price managed to maintain a positive upward pattern up to the height of 0.68000.
However, the price has not passed that level which is seen as an important obstacle for the price.
After leveling off on Monday yesterday, the price dropped lower in the Asian session this morning to the level of 0.67400 and it is expected that the price risks falling even lower.
A bearish signal is identified when the price movement is below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the AUD/USD chart.
The price drop if continued is seen to lead to the 0.67000 zone as the closest focus.
If the breakout price is lower, the downside could reach around 0.66000 if the Aussie dollar is trading lower.
On the other hand, the price has the potential to rise again with the expectation of a prolonged decline against the US dollar.
The price increase after crossing the MA50 line will further test the 0.68000 resistance.
After that, the price will record the latest high with a higher target moving at 0.69000.
