The price movement pattern on the AUD/USD currency pair chart has changed to see a drastic jump due to the impact of the market's reaction to the FOMC meeting.
Including the Aussie dollar, most other major currencies are also taking advantage of the current opportunity to strengthen following a significant decline in the US dollar.
The decline in the US dollar was driven by the dovish tone conveyed by Federal Reserve (Fed) Chairman Jerome Powell after the announcement of interest rates being kept on hold.
Investors remain looking at the projected 3 times interest rate cuts to be implemented by the Fed for this year 2024.
Without giving certainty on the outcome of the meeting in the future, Powell said the situation will depend on the data present with a focus on inflation and employment.
Also giving support to the Aussie dollar in the Asian session this morning was the Australian jobs report which was published with an encouraging reading.
A strong increase in employment of 116,500 for February as well as a drop in the unemployment rate to 3.7% indicate positive labor market developments.
Assessing the price movement on the AUD/USD chart, the pattern has turned bearish ending the bearish trend displayed earlier.
On Wednesday yesterday, the 0.65400 level was seen as resistance with prices hovering below it after failing to make gains in the Asian session.
However, the situation changed in the New York session which saw a surge past the 0.65400 level to reach a height of 0.65850 at the end of the session.
The sustained momentum has seen prices continue to surge in the Asian and European sessions today.
As of 3pm, the price has reached the 0.66300 level with the momentum still seen as continuing.
The price is expected to continue the bullish pattern until the next session with the target to overcome the height of the previous weeks around 0.66600.
Next, the concentration zone at 0.67000 is expected to be reached for the price to record the latest 9-week high.
However, if the price plunges back below the 0.66000 level, it will be a signal for investors to be cautious.
The price can drop back to the 0.65400 zone before and then to the support zone at 0.65000.
