The Australian dollar in trading in the Asian session this morning (Wednesday) was influenced by the release of economic data which is the focus of the Australian central bank in setting their monetary policy.
Australia's latest consumer price index (CPI) came in with an annualized reading of 3.4% for January, missing forecasts for an increase of 3.6%.
Having a negative impact on the movement of the Australian dollar, its value experienced a decline after the data was reported until the end of the trading session in Asia.
This has given a clearer direction for price movements on the chart of the AUD/USD currency pair.
If observed, the price ended the previous New York session flat around the 0.65400 level.
Also blocked by the Moving Average 50 (MA50) line on the 1-hour time frame on the AUD/USD chart, investors are ready for an early signal for a bearish move for the price.
After the data was published in this morning's Asian session, the price made a dive below the 0.65400 level and headed towards the concentration level at 0.65000.
A lower decrease could occur if there are additional factors such as the strengthening of the US dollar that reacts to the latest published data.
Passing the 0.65000 level, the price will continue to drop lower towards the support zone at 0.64500.
But if the direction of the price movement changes again, the rise could happen again seeing the price retrace the 0.65400 level that was breached earlier.
Next, the price increase if continued will target the resistance zone of 0.66000 or higher to reach the latest high level.
