Investors have been watching the directional changes on the AUD/USD currency pair chart for several different market sessions since yesterday.
A significant jump in prices took place in the New York session yesterday following the market's reaction to the United States (US) inflation data published with figures falling in line with forecasts.
The US dollar's significant weakening after that has given room to other major currencies in the market to rise including the Aussie dollar.
But the positive momentum of the Aussie dollar could not be maintained in the Asian session this morning (Thursday) when the Australian jobs report came in with mixed figures.
Although job growth came in ahead of forecasts in April at 38,500, the unemployment rate rose to 4.1% compared to forecasts to remain at 3.9%.
This in turn reduced the gains made by the Aussie dollar which also faced expectations for an easing of central bank policy.
Examining the AUD/USD chart, the price has surged strongly in the New York session yesterday from the 0.66300 level to reach the 0.67000 concentration zone.
In the Asian session this morning also saw the resistance zone tested by the price but the decline was displayed towards trading to the opening of the European session.
Prices have the potential to move in both directions, but investors expect the bullish trend to continue with further depreciation of the US dollar.
If the price manages to rise again to be above 0.67000, the price increase will be expected to continue towards the concentration zone at 0.67700 for the latest high.
However, if the price is pushed down, the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart will be tested and if it is broken, it will give a bearish signal for the price.
The extended decline is likely to re-hit the price support zone at 0.66000 which was the focus at the beginning of the week.
