Despite showing a gloomy movement on Tuesday yesterday, the Australian dollar managed to rise again in the Asian trading session this Wednesday morning.
This was driven by the release of encouraging Australian economic data for the reading for the end of 2022.
Inflation rates in Australia surged again as the annual reading of the consumer price index (CPI) rose to 7.3% beating forecasts of 7.2%, surpassing the previous reading of 6.9%.
Additionally, Australia's retail sales rate for November jumped to 1.4%, well below the previous reading of 0.4%.
This situation will trigger expectations for the Australian central bank's tendency to go back towards policy tightening (tightening) based on the reading of the data as well as encouraging the strengthening of the Aussie dollar.
On the price chart of the AUD/USD currency pair, the price showed a downward pattern on Tuesday yesterday when the Federal Reserve (Fed) Chairman Jerome Powell's speech failed to invite a significant market reaction in the New York session yesterday.
The price at the beginning of the week which had reached a height of around 0.69500 then made a decline yesterday to the level of 0.68600 before bouncing back towards the 0.69000 zone.
In this morning's Asian session, the price managed to rise again past the 0.69000 zone and also crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the AUD/USD chart suggesting the bullish pattern continues.
The market wants to see whether the rise can break past the previous high of 0.69600 or not for a more clear indication of a bullish trend.
If successful, the next price will be driven higher to the 0.70000 target for the latest 5-month record high.
However, the situation could change when the market's focus is now also on the release of United States (US) inflation data on Thursday.
If the price decline happens, a drop below the 0.69000 zone again and also below the MA50 level will expect the initial signal of a bearish trend movement.
The price drop will reach around 0.68300 before continuing lower until the price is expected to reach the 0.67000 support again.
