The Aussie dollar continued to strengthen its position to strengthen after gaining convincing optimism from the Central Bank of Australia (RBA) even as the central bank continued to maintain policy.
In addition, the declining risk of the Covid-19 outbreak on the Omicron variant is seen to have resulted in safe-haven currencies including the USD being less in demand from the market.
The main focus will continue to be on the release of the US consumer price index (CPI) data on Friday as well as Chinese inflation data which will also be the focus for investors.
The price movement on the AUD/USD pair chart seems to be continuing another 4 -day continuous climb this week to reach back to the SBR (support become resistance) zone of 0.72000.
The climb altogether has produced a jump of close to 200 pips after the price tracked the support zone since September 2020 at the close of last week as well as a 15 -month low.
The momentum of the surge was also seen to remain strong as the price remained trading above the resistance level of the Moving Average 50 (MA50) to be consistent in giving a clearer uptrend pattern.
The next perspective will show the reaction of the price movement in the SBR 0.72000 zone before there is a high possibility that the price will tear the zone to continue climbing to the SBR 0.73000 zone.
A more aggressive surge is also expected to reach back to the resistance zone at 0.74000 which was also a key focus zone in December 2018.
But it is not impossible that the price may be able to make a rejection first on the latest SBR zone to re -form a rebounce which is expected to retest the 0.71000 zone.
A lower decline than that will see the price move to the September 2020 support zone at 0.70000 and thus will be re -evaluated for the next direction.
