Australia's annual inflation data (CPI) reading published in the Asian session this morning (Wednesday) recorded a lower figure at 6.8% for February against a forecast of 7.2%, from the previous reading of 7.4%.
This is further prompting a looser policy-setting move by the Reserve Bank of Australia (RBA) after its recent policy meeting raised interest rates by 25 basis points.
However, in the minutes of the scrutinized meeting, the RBA appears to have agreed to reconsider actions to stop policy tightening as has been done by the central bank of Canada (BOC).
The Australian dollar immediately fell after the reaction to the release of the CPI data, but the decline was not so noticeable until entering the European session.
If the price chart of the AUD/USD currency pair is examined, the price that was slowly leveling above the 0.67000 level started to fall slightly below that level and continued the decline at the beginning of the opening of the European session.
This situation is seen to have restrained the progress of prices to continue rising higher after the upward movement in prices was exhibited yesterday (Tuesday).
The price that is still above the support level of the Moving Average 50 (MA50) in the 1-hour time frame on the AUD/USD chart still gives an indication that the price increase will continue.
If it bounces back above the 0.67000 level, the price will continue its climb towards 0.67500, which is the high level reached last week.
Passing to higher levels with more clear bullish signals, the price could reach up to the height at 0.69000.
However, if the price is unable to maintain the increase and the effect of the inflation data published just now continues to drag the price down, the decline will pass the closest support level at 0.66300.
Next, the price will continue to decline towards the concentration zone at 0.65700-0.65400.
