AUD/USD Stuck As Australian CPI Data Rises!

<p>&nbsp;The Asian session this morning (Wednesday) saw a surge in the value of the Australian dollar following the market's reaction to the published inflation data.</p><p><br /></p><p>At 8.30am local time, Australia's consumer price index (CPI) data was published with annual inflation readings rising to 5.6% for September from 5.2% the previous month, beating forecasts of 5.3%.</p><p><br /></p><p>This rise in inflation is likely to prompt central banks to shift towards tightening their monetary policy and make the Aussie dollar stronger.</p><p><br /></p><p>The Reserve Bank of Australia (RBA) has kept interest rates unchanged at its latest policy meeting with expectations that current policy will be maintained.</p><p><br /></p><p>The price chart of the AUD/USD currency pair on Wednesday yesterday was seen to continue the increase at the beginning of the week reaching a high level of around 0.63800 before retreating back down to around 0.634500.</p><p><br /></p><p>Investors are still seeing price movement signals on a bullish trend where prices remain above the Moving Average 50 (MA50) support level on the 1-hour time frame on the AUD/USD chart.</p><p><br /></p><p>At the beginning of the Asian session this morning, investors saw the surge continue to exceed the height reached yesterday after the Australian CPI data was published.</p><p><br /></p><p><br /></p><p>The surge hit a recent high of 0.64000 before the price retreated back down to around 0.63700 resuming early European session trading.</p><p><br /></p><p>If the move higher continues, the price is seen to head towards the resistance zone at 0.64400 which was challenged on October 11th.</p><p><br /></p><p>If the breakout is higher than that, the target for the next bullish move is at the 0.65000 level.</p><p><br /></p><p>However, if the price shows a decline again, the MA50 support level will be tested and if it is broken, it will signal a change in the bearish trend for the price.</p><p><br /></p><p>The decline is seen to return to the important support zone at 0.63000 which has been tested several times in recent weeks.</p>