Investors digested the reading of the data component of the United States (US) NFP employment report for December which was not very satisfactory even though it was initially seen as relatively strong.
The unemployment rate fell to 3.5%, job growth exceeded expectations but did not exceed the previous month's figure. While the average hourly earnings recorded a decrease.
The US dollar lost its 'power' in the last session of last week in addition to the ISM survey data of the US manufacturing service sector showing a worrying figure below the stable level of 50.0 points.
Thus, most of the other major currencies in the market are seen to rise strongly, which is more driven by the decline of the king of currencies, the US dollar.
Including the Australian dollar on the chart of the AUD/USD currency pair, the daily jump on Friday recorded around 160 pips.
Investors who initially expected a bearish price movement began to slip when the situation changed at the end of the week.
After hovering around 0.67200, the price then surged until it reached the high level reached last Wednesday around 0.68800.
After the price moved back above the Moving Average 50 (MA50) level on the 1-hour time frame on the AUD/USD chart, investors are ready to wait for additional signals to expect a bullish trend to be exhibited this week.
Starting trading in the Asian session this morning (Monday), the price continued to rise and has crossed the 0.69000 resistance zone as well as set a new 5-month high.
As of 3pm local time, the price has been hovering around the 0.69400 high and looks set to continue climbing higher.
The next target is to head towards the 0.7000 level which is expected to be the latest resistance for the price.
However, if the price plunges again below the 0.69000 zone, investors will be ready to wait for the price to fall again and there is likely to be a signal of a change in the price trend.
The concentration levels around 0.68300 and 0.67600 are expected to show an interesting reaction before the price reaches the support level at 0.67000.
