Australian inflation data is the focus of investors in the Asian session this morning (Wednesday) which has had an impact on the movement of the Australian dollar currency.
Australia's annual reading of the consumer price index (CPI) for April recorded a figure that rose to 6.8% from a forecast of 6.4%.
This is seen as a difficult situation for the Reserve Bank of Australia (RBA) in setting monetary policy, which has begun to slow down tightening measures before.
In the uncertainty, also given focus is China's economic data published at the same time.
Following the declining data reading for the world's second-largest economy, the Australian dollar was also dragged down by sentiment seen as risking a negative impact on the currency.
The price chart of the AUD/USD currency pair, at the beginning of the week was seen to be flat at the 0.65500 resistance zone.
Price movement remains below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the AUD/USD chart, making investors ready for bearish movement.
This morning's Asian session saw a fluctuating price reaction after China's economic data and Australia's CPI was published with the 0.65500 resistance also being tested.
However, after failing to break through, the price showed a slow decline and tried to overcome last week's low below 0.65000.
If the price continues to go down to a lower level, the decline is seen to go up to the zone around 0.64000-0.63700.
However if the surge occurs again, the 0.65500 resistance will be tested to try to break through before giving an early indication of a trend change.
The continued increase will lead to the SBR (support become resistance) zone at 0.66500 and then reach the 0.67000 level which will be the latest resistance for the price.
