The decision of the Australian central bank meeting in the Asian session this morning has driven the price movement for the Aussie dollar currency just now.
The Reserve Bank of Australia (RBA) met the forecast of raising interest rates by 25 basis points to 3.35% with the central bank's follow-up statement being considered hawkish by the market.
The RBA will continue to increase interest rates with a firm stance to lower the inflation rate to the 2% target.
The Australian dollar began to show an increase in value against the US dollar this morning to trade slightly recovering from the pressure of the previous price drop.
If you look at the price chart of the AUD/USD currency pair, the price has displayed a plunge pattern when the US dollar managed to strengthen at the end of last week following the report of the United States (US) NFP employment data which was much stronger than forecast.
Coupled with the tensions that erupted between the US and China since last week following the spy balloon issue, the risk market favored the US dollar as a safe-haven while the Aussie dollar came under pressure.
After the decline at the beginning of the week yesterday reaching a level around 0.68600, the increase was exhibited again until the reaction to the RBA meeting just now.
The price increase however started to slow down around 0.69500 and the price was also seen testing the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the AUD/USD chart for investors to assess indications for further price direction.
If it fails to continue the increase, the price will likely reverse its direction to decrease again and will pass the level reached yesterday.
A further decline is seen to be heading to around 0.68300 and 0.67600 before reaching the 0.67000 support zone.
However, if the increase succeeds beyond the MA50 barrier, the price is seen to test the concentration zone at 0.70000 before signaling a change in the bullish trend.
The continued higher move will reach the important zone again at the previous height of 0.71000.
