The price chart of the AUD/USD currency pair soared in the New York session yesterday, hitting a new 3-month high.
Like other major charts, AUD/USD was also affected by the depreciation of the US dollar as the market reacted to the United States (US) inflation data published yesterday.
The US consumer price index recorded an annual reading that fell to 7.1%, making inflation fall for 5 consecutive months, as well as strengthening expectations for the Federal Reserve (Fed) to slow down interest rate hikes at the FOMC meeting early Thursday morning.
The daily increase on the AUD/USD chart was recorded around 150 pips from the 0.67400 level to reach the high level of 0.68900.
The surge is also seen to have surpassed last week's high at 0.68500 to record a new high.
However, the price is seen to have retreated again at the end of the New York session connecting to the Asian session this morning (Wednesday) around the 0.68300 zone.
Investors will now be more cautious awaiting the results of the FOMC meeting which will drive movement on the price chart.
Not to be forgotten also in the Asian session on Thursday tomorrow will be published the Australian employment data report for November with the forecast of job growth slightly lower than the previous month.
With the tendency of the US dollar to continue to weaken these few sessions, the price is expected to continue the rise higher to test the resistance zone at 0.69000.
Next, the price that managed to break through the resistance will make the latest target at 0.7000 for the latest 4-month record high.
However, if the direction of price movement starts to change and make a decline again, the price will drop to the 0.67600 zone and test the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the AUD/USD chart.
Falling below that level will trigger an early signal for a bearish trend change with price expectations to head towards around 0.67000.
