The Australian dollar managed to show gains towards the end of the week after falling to a 1-month low as investors eased trades against the US dollar ahead of the Federal Reserve (Fed) Chairman's speech at the Jackson Hole Symposium for the next monetary policy indication.
In addition, the strengthening of the Australian dollar is also due to the report that China will increase the stimulus with another 1 trillion Yuan step to further expand economic growth. The signal of China's economic recovery will have a positive effect on Australia, which is its largest trading partner.
Meanwhile, Australia's mixed jobs report left the market anticipating a possible rate hike by the Reserve Bank of Australia (RBA) over the next few months.
The RBA was expected to raise interest rates by another half a basis point in September, but weak data readings prompted markets to pull back on those expectations.
Investors are now looking forward to the United States (US) economic growth data that will be published in the New York session shortly, which is expected to drive the movement of the US dollar.
Assessing the price movement on the AUD/USD currency pair chart, the price is seen to have leveled above the 0.68600 support level since the beginning of the week before starting to signal an end to the bearish trend pattern of the past week.
An initial surge was seen last Tuesday before the price leveled back on Wednesday yesterday at the 0.69000 zone supported by the Moving Average 50 (MA50) support level on the 1-hour time frame on the AUD/USD chart.
The rising pattern is more clearly displayed today (Thursday) from the level of 0.69000 at the beginning of the Asian session this morning until heading to the level of 0.70000 in trades connected to the European session.
The increase of almost 100 pips is likely to continue in the New York session, but any surprises could happen when the focus is on the release of US economic data.
If the price continues to rise, the 0.70000 level which is in the SBR (support become resistance) zone will be breached to record the latest 1-week high level.
The price that continues to rise will jump up to the previous concentration level such as in the 0.70400 zone before heading to the height zone at 0.71000.
On the other hand, if the price fails to cross 0.70000, it is seen that the price will return to the support level of 0.69000, but crossing the MA50 support level will start to trigger expectations for a bearish trend change.
A further pullback could further break the weekly support level at 0.68600, before making a fresh 5-week low towards a target around 0.68300 or at 0.67700.
