As the market is awaiting the results of the FOMC meeting which is approaching, the focus is momentarily on the release of Australian inflation data in the Asian session this morning.
Australia's annual consumer price index (CPI) reading came in at a lower-than-expected 3.7%, down from 4.3% previously to 3.4% for December.
The CPI reading for the last quarter of 2023 also fell to 0.6% lower than the forecast of 0.8%.
This has given a bearish reaction to the Australian dollar in the Asian session just before the slow price movement resumed the early trading opening of the European session.
Examining the movement on the chart of the AUD/USD currency pair, the price has made a decline from the 0.66000 level at the beginning of the Asian session until it reached around 0.65600.
The price plunge is also seen to occur after the price tested the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the chart, signaling a bearish movement.
The zone around 0.65500 will be the focus to be tested if the price decline continues into the next sessions.
A move lower can be expected towards the target at 0.65000, but investors should be wary of a change in direction that could happen at any moment with market uncertainty awaiting the outcome of the FOMC meeting.
In the event of a price surge, the 0.66000 level is likely to be breached and continue to rise to a higher level, surpassing the previous weeks level.
The expected strong rise in price could reach up to the concentration zone at 0.67000 where the price has fallen from that height in mid-January trading.
