The Australian dollar found solid support to strengthen in the Asian session this morning (Wednesday) following the latest published inflation data report.
Looking at the report, Australia's annual inflation increased again to 3.5% for March, after remaining at 3.4% for 3 consecutive months from December to February.
Therefore, this is the highest inflation rate in 4 months which is likely to push the Reserve Bank of Australia (RBA) to take a similar view as the Federal Reserve (Fed), which is to maintain a strict policy to lower the inflation rate.
As a result, the Aussie dollar strengthened to a fresh 2-week high against the US dollar.
Price movements are examined based on the AUD/USD currency pair chart.
A bullish pattern has actually started to be seen since the beginning of last week after the price rebounded at the close of last week's trading from the lowest level of 0.63700 that was hit.
After breaking through the initial resistance in the 0.64500 zone, the price continued to climb reaching the 0.64900 level in the New York session yesterday.
In the Asian session this morning, the release of Australian inflation data has supported the price to climb even higher with the latest high being near 0.65300.
Momentum began to slowly resume trading at the opening of the European session with prices slightly retreating from those heights.
Coupled with the situation of the depreciation of the US dollar after the PMI data of the United States (US) was published, prices could potentially be driven to higher levels.
The expected price increase will continue to test the next focus resistance zone around 0.65400 before the target moves to a higher level, 0.66000.
If the bullish pattern of the price fails to be maintained, be alert for the possibility that the price may make a dive again.
A break below the 0.65000 level will push the price to slip back to yesterday's 0.64500 concentration zone.
Next, after there are more obvious factors that push the price down, the target is for the price to reach the 0.63700 support zone again last week
