Analysts see a tendency for higher prices to occur on the chart of the AUD/USD currency pair based on the following factors.
The momentum of the price jump was strong in yesterday's New York trading session following the market's reaction to the published United States (US) inflation data.
The US annual inflation reading for October fell to 3.2% from a previous reading of 3.7% in September.
This further strengthens expectations that interest rate hikes will not happen at the December FOMC meeting, and it is likely that the Federal Reserve (Fed) will slow down their monetary policy.
In the Asian session this morning (Wednesday), the Australian wage price index data met expectations to increase to 1.3% from 0.9% previously.
Furthermore, the published Chinese economic data gives a positive signal for the current health and is also seen to have a positive impact on Australia.
Thus, the Aussie dollar is seen to be in a good situation to continue to record an increase in its value.
Examining the AUD/USD chart, after the price tested the Moving Average 50 (MA50) support level on the 1-hour time frame around the 0.63700 level, the price then jumped around 140 pips to reach the 0.65000 zone.
This has also changed the bearish movement pattern of last week's price and shows the signal of trend change again.
The price increase is expected to continue towards the 0.65400 level before continuing the climb to the 0.66000 target.
But if the situation changes, investors need to be prepared for a further drop in prices that will reduce the profits made before.
The drop in price is seen to be around the 0.64400 zone first before returning to reach around 0.63700 which is the concentration level before the surge happened yesterday.
Some more US economic data will be published in the New York session tonight which could drive price movements, investors need to be more cautious.
