Tremors are rising at the opening of September trading as the much-anticipated FOMC meeting approaches after months of questions about interest rate cuts by the Federal Reserve (Fed) hovering over the market.
Market sentiment is seen as risky with massive selling also taking place in global stock markets.
The currency market was also affected by high-risk currencies such as the Australian dollar, which showed a more obvious fall in value yesterday.
Previously, the Australian dollar was moving well against the US dollar before the price movement began to level off and level last week.
If examined on the chart of the AUD/USD currency pair, the price that was flat during the past week in the 0.68000 zone started to be pushed down this week.
The daily decline of around 100 pips on Tuesday yesterday saw the price from the 0.68000 zone have plunged to the 0.67000 zone as of this morning's Asian trading session (Wednesday).
The US dollar if it trades well this week is likely to add more pressure to the Aussie dollar.
However, some important data involving the employment component could trigger a volatile movement reaction towards the end of the week.
Price movement below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the AUD/USD chart signals a bearish trend tendency for the price.
If the price continues its decline below the 0.67000 zone, the level around 0.66000 is seen as a target to aim for.
However, if a strong price bounce occurs again, the MA50 barrier will be tested before a continued rise will signal a trend reversal.
Next, the 0.68000 zone became the focus as a resistance to be broken after also being tested during last week's trading.
