The price drop pattern on the AUD/USD currency pair chart is one of the indicators for investors that the current market situation is still in a risky state.
This is due to the difference in the nature of both the Australian dollar and the US dollar which move in opposite directions when there is a change in market sentiment.
In addition, the Australian dollar is also sensitive to the economic development of China, which is their main trading partner.
Currently, China is seen to be planning to implement stimulus measures in an effort to restore the economy involving cutting interest rates and injecting funds into major banks.
But at the latest conference, China disappointed investors when it gave no indication of further stimulus and that also had a further weakening effect on the Aussie dollar.
However, further declines in the Australian currency are likely to be limited after there was a hawkish tone after investors perused the minutes of the Reserve Bank of Australia (RBA) meeting earlier this morning.
Examining the price movement on the chart of the AUD/USD currency pair, the price has made a decline from the high level of 0.69400 at the beginning of last week and continued until the beginning of this week.
Continuing the decline in the Asian session this morning (Tuesday), the price approached the 0.67000 zone and remained moving below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart for a bearish signal.
A continued decline below 0.67000 will push price expectations to a lower level towards the 0.66000 concentration zone.
However, if there is a surge, the resistance seen to be tested by the price is at 0.68000 and breaking through the MA50 barrier will give an early indication of a trend change.
