Forget the FOMC Article for a Moment! What Happened to AUD/USD After the Australian CPI Report?

<p>As the market is awaiting the results of the FOMC meeting which is approaching, the focus is momentarily on the release of Australian inflation data in the Asian session this morning.</p><p><br /></p><p>Australia's annual consumer price index (CPI) reading came in at a lower-than-expected 3.7%, down from 4.3% previously to 3.4% for December.</p><p><br /></p><p>The CPI reading for the last quarter of 2023 also fell to 0.6% lower than the forecast of 0.8%.</p><p><br /></p><p>This has given a bearish reaction to the Australian dollar in the Asian session just before the slow price movement resumed the early trading opening of the European session.</p><p><br /></p><p>Examining the movement on the chart of the AUD/USD currency pair, the price has made a decline from the 0.66000 level at the beginning of the Asian session until it reached around 0.65600.</p><p><br /></p><p>The price plunge is also seen to occur after the price tested the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the chart, signaling a bearish movement.</p><p><br /></p><p><br /></p><p>The zone around 0.65500 will be the focus to be tested if the price decline continues into the next sessions.</p><p><br /></p><p>A move lower can be expected towards the target at 0.65000, but investors should be wary of a change in direction that could happen at any moment with market uncertainty awaiting the outcome of the FOMC meeting.</p><p><br /></p><p>In the event of a price surge, the 0.66000 level is likely to be breached and continue to rise to a higher level, surpassing the previous weeks level.</p><p><br /></p><p>The expected strong rise in price could reach up to the concentration zone at 0.67000 where the price has fallen from that height in mid-January trading.</p>