Before focusing on the main data of the week, which is the United States (US) inflation data on Thursday, investors first examine the release of the same data for Australia in the Asian session this morning (Wednesday).
Reviewing the report, Australia's consumer price index (CPI) for the annual reading published by the Australian Bureau of Statistics (ABS) showed a slower than forecast figure of 4.4%.
Australia's inflation rate for November 2023 decreased to 4.3% from 4.9% the previous month, showing the lowest rate in 2 years.
The Australian dollar however showed positive movement throughout the Asian trading session today.
Examining the AUD/USD currency market chart, the price showed a downward pattern throughout Tuesday yesterday.
From the 0.67300 level, the price dropped below the 0.67000 zone before settling at the end of the New York session low around 0.66800.
A slow rise in prices was shown as trading continued into the Asian session this morning to the 0.67000 level where prices showed no significant reaction following the publication of the Australian CPI data.
Flattening at the 0.67000 level, the price is also seen testing the Moving Average 50 (MA50) barrier on the 1-hour time frame on the AUD/USD chart while investors will assess the indications for the direction of further movement.
If the price makes a decline from the 0.67000 zone after failing to break through the MA50 barrier, the bearish price trend at the end of 2023 will continue again.
The target is for the price to reach around 0.66000 to record a recent 4-week low.
However, if the price rises above the 0.67000 zone and breaks through the MA50 barrier, this will be a sign for a change in the bullish trend.
The price increase will approach the concentration zone around 0.67500 or higher after the price pattern starts to change.
A strong rise in price could reach as high as 0.68700, which is the peak level touched in late 2023 trading.
