In line with the prediction of the results of the central bank meeting in the Asian session this morning when the Reserve Bank of Australia (RBA) has increased interest rates by 25 basis points to 2.85%.
It was the second consecutive 25 basis point hike by the RBA, indicating less aggressive policy tightening than previously, but Governor Philip Lowe signaled rate hikes would continue.
At an earlier meeting, Lowe had expressed concern over the impact of high borrowing costs in Australia and would weigh on housing issues and prompt a decision for slower interest rate hikes.
However, the Australian dollar in the Asian session this morning was seen moving positively until the end of the session following the initial reaction to the RBA meeting results.
On the price chart of the AUD/USD currency pair, the price showed a bearish pattern at the opening of Monday's early week yesterday, touching the support level at 0.63700 before rebounding to close trading around 0.64000 at the end of the New York session.
Continuing trading in the Asian session this morning, prices showed an increase with the reaction to the RBA meeting results saw prices have crossed the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the AUD/USD chart, signaling the beginning of a bullish movement for prices.
The rise if continued is seen to head towards the resistance zone at the height of 0.65400 and surpass the high reached last week.
Passing the resistance, the price will record the latest 6-week high with a target to reach around the 0.67000 zone.
However, if the price starts to show a drop back below the MA50 level, the initial signal to continue the bearish movement will expect the support level at 0.67000 to be tested again.
A lower decline if continued is seen to lead to a lower support level at the 0.62000 zone which has successfully restrained the lower price drop throughout last October.
