The Australian dollar traded higher during the Asian session today with a higher rise than the horizontal movement on display since last week.
The appreciation of the Aussie dollar was driven by the reading of the Australian inflation rate for the third quarter issued which rose to 1.6% higher than expected. The positive reading showed a recovery in the consumer sector after declining 1.9% in the second quarter.
Despite risky market sentiment, the Aussie dollar managed to take a chance to rise in today's Asian session, but investors need to be cautious ahead of next week's Australian central bank monetary policy meeting.
According to economists, the Reserve Bank of Australia (RBA) is expected to increase government bond purchases to A $ 100 billion dollars ($ 71.29) at the latest meeting in addition to expectations of lowering interest rates.
On the price chart of the AUD / USD pair, the price has risen to the level of 0.71500 testing the high level of trading last Friday in the SBR (support become resistance) zone.
Subsequent increases will see higher concentration levels such as 0.71800, 0.72000 and 0.72400 among the levels to be tested.
However, if the price is re-pressed lower again, the support level at 0.70800 will be the target before the lower decline will lead to the support zone near 0.70000.
