The Australian dollar soared earlier on surprise by the results of the Australian central bank's policy meeting for the June issue.
The Reserve Bank of Australia (RBA) surprised the market by raising interest rates by 25 basis points to 4.10%, beating expectations to remain at 3.85%.
According to the RBA, inflation has already reached its peak, but at a rate of 7% it is still too high and needs time to return to the target level.
The act of raising this rate is to increase confidence that inflation will come down to the target level in the appropriate period.
The chart of the AUD/USD currency pair started to show significant movement after the results of the meeting which took place at 12.30pm yesterday.
The price initially slowed around the 0.66100 level and flattened above the Moving Average 50 (MA50) support level on the 1-hour time frame on the AUD/USD chart.
Then a surge was shown until it reached 0.66700 before the price calmed down a bit towards the early opening of the European session.
The rise is seen to continue to touch the 0.67000 level which is an important focus zone to be tested.
If the increase still continues to a higher level, between the zones that can be observed are at 0.67700 and 0.68300.
However, it is not impossible for the price to reverse direction to make a decline again with the market movement likely to be driven back by the US dollar.
If the price is pushed down again, a drop below the MA50 support level will expect a lower drop towards the RBS (resistance become support) zone at 0.65500.
Next, the price support level hit last week around 0.64600 will once again be the focus to target if the bearish pattern is maintained.
