The Reserve Bank of Australia (RBA) met its forecast to raise interest rates by 25 basis points at its last monetary policy meeting for 2022.
The interest rate has reached the level of 3.10% making a total increase of 300 basis points in a period of 8 months.
Following the decision to increase interest rates, the statement by Governor Philip Lowe was then scrutinized by investors.
The central bank is seen as still trying to bring inflation down to the target level and will do what is necessary to achieve that objective.
The central bank is expected to continue raising interest rates as the inflation rate in Australia is still too high while global economic developments, household spending and wages are monitored by the central bank.
What is the effect of the RBA meeting's decision on the price movement on the AUD/USD currency pair chart today?
Yesterday, the price recorded a daily decrease of around 160 pips due to the strengthening of the US dollar in the New York session, pushing the price down again after the release of the United States (US) service survey data.
After the price fell to around 0.67000, there was a price rebound to resume the market opening at the beginning of the Asian session.
However, after the results of the RBA meeting, the price did not show a significant reaction as the price movement remained slow around 0.67300.
Hagra is seen to be moving in a bearish trend after yesterday's decline also passed the Moving Average 50 (MA50) level on the 1-hour time frame on the AUD/USD chart which indicates a change in price direction.
A further decline if it breaks the support level at 0.67000 is expected to test last week's support level at 0.66400.
Further price decline will continue towards the concentration zone at around 0.65400.
Meanwhile, for the expected price increase, the initial resistance at around 0.67600-0.67800 will be tested before the increase beyond the zone will give a bullish signal again for price movement.
The continued rise will challenge the high reached on Monday yesterday before targeting 0.69000 to record the latest 12-week high.
