Investors are watching for a reversal in the bearish pattern of the AUD/USD currency pair chart that was displayed earlier this week.
If observed in the past week, the price has decreased until reaching the 0.63700 level before bouncing from the support level.
The strengthening pressure of the US dollar has dragged the Aussie dollar down for the past 2 weeks.
Added to the still risky market sentiment, expectations for the Federal Reserve (Fed) to maintain high interest rates are also seen to give an advantage to the US dollar while under pressure for the Aussie dollar.
But at the beginning of this week, prices were seen to rise slightly as the risky market sentiment began to subside for a while.
Investors are also cautiously awaiting the latest economic data to be published to assess policy-setting measures by the central bank.
Australian inflation data will be the focus of trading in the Asian session tomorrow (Wednesday) which is expected to influence price movements more significantly.
In yesterday's Monday trading, the price increase was seen to test the 0.64500 zone which became a resistance also tested at the end of last week.
Continuing today's trading, the price made a slow climb above the 0.64500 level and became a bullish signal for the price with sustained movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the AUD/USD chart.
A higher increase will be expected towards the 0.65000 level for the price to test the concentration zone.
Continuing higher, the 0.65400 resistance zone will be waiting to be tested after the last time the price was around that was on April 12th.
However, if the US dollar succeeds in regaining its momentum, prices are likely to be pushed down again.
The support level at 0.63700 that was hit last week will be tested again.
A further decline will mark the latest 5-month low with the next target being towards the 0.63000 support zone.
