A recovery in market sentiment with positive earnings reports by several key firms earlier in the week has given room to high-yielding currencies such as the Australian dollar to strengthen.
In addition to the US dollar, which is included in the safe-haven group, is experiencing a decline, the Australian dollar has recovered from the fall in value displayed at the close of trading last week.
However, the strengthening of the Australian dollar that started at the beginning of the week was slightly halted in Tuesday's trade yesterday when the report of the minutes of the Australian central bank meeting published yesterday signaled a slowdown in policy tightening after the result of a lower than expected rate hike.
Australia's jobs data report on Thursday will be the focus of the market which could also influence further policy setting by the central bank.
The price movement on the AUD/USD currency pair chart is still considered to be moving in a horizontal zone with price movement between the 0.62000 and 0.63500 zones.
Starting the week's early trading from the 0.62000 support zone last Monday, the price has reached a high around 0.63400 on Tuesday yesterday although the pattern displayed is more flat than the previous day's surge.
However, investors assess that there is an early signal for the start of a bullish trend after the price moved back above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the AUD/USD chart.
If the price increase continues today, the resistance at the SBR zone (support become resistance) 0.63500 will be tested to be broken.
Next, the price that managed to continue the bullish trend is seen to be heading towards the concentration zone that has been tested since the end of September around 0.65300.
On the other hand, if the price shows a drop back below the MA50 level, the support zone at 0.62000 will again be tested this week.
A break above that key zone would mark a fresh 2-year low with a lower target possibly reaching up to 0.60000.
