The re-decline occurred on the chart of the AUD/USD currency pair in yesterday's New York session when the United States (US) consumer confidence survey data was published with encouraging numbers as well as supporting the recovery of the US dollar.
However, the limited price movement in the Asian session this morning (Wednesday) following the Australian dollar was also supported by the reading of the latest published economic data.
Focused on the central bank, Australian consumer inflation data recorded an increase of 3.6% in May, beating forecasts for a decline to 3.4%.
This is seen to make it difficult for the Reserve Bank of Australia (RBA) to switch to policy easing and be stuck in a dilemma like the Federal Reserve (Fed).
Looking at the AUD/USD chart, the price made a rally to the 0.66800 level yesterday before pulling back down until the end of the New York session.
The price movement started to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart but the bearish pattern did not continue in the Asian session this morning.
On the other hand, there was an attempt to increase the price following the reaction to the published Australian inflation data, but the price increase was seen to be blocked below the MA50 line.
The price is hovering around 0.66500 and investors remain watching the price reaction until the early opening of the European session this evening.
If the price collapses to the bottom, the support level at 0.66000 is seen as the nearest concentration zone for the price test as at the end of last week.
A continued decline lower would expect the price to reach around 0.65400 again.
Instead, the price continues to surge above the MA50 line, the bullish price will try to overcome the highs reached yesterday.
Next, the resistance zone at 0.67000 will be observed as a critical zone for the price after having been tested several times before in mid-May trading, but still immune from being broken.
See the picture of the price chart of the AUD/USD pair below for your technical analysis reference.
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