The movement of the Australian dollar in the Asian session this morning began to change direction compared to yesterday due to the market's reaction to the Australian central bank meeting.
The Reserve Bank of Australia (RBA) did not meet the forecast to raise interest rates, instead interest rates were maintained at 4.10% at the latest policy meeting.
The missed expectations have invited the depreciation of the Aussie dollar in the initial reaction to the results of the meeting being announced.
The market was seen as unsurprised by the decision and expected interest rates to remain on hold until the September meeting.
The RBA however still signaled that policy tightening measures still need to continue, but will depend on the latest data published after this.
The price chart of the AUD/USD currency pair saw a drop in price again this morning below the 0.67000 level.
If you look at Monday's movement pattern yesterday, the price has managed to display an increase to reach a level around 0.67400.
But the signal turned bearish again after today's decline has crossed the Moving Average 50 (MA50) support level on the 1-hour time frame on the AUD/USD chart.
The decline is expected to continue towards the 0.66300 level which is the price support tested at the end of last week's trading.
A lower drop if it crosses that level will expect the 0.65400 zone as the next target that will be tested by the price.
However, if the price bounces back above the MA50, the 0.67000 level will likely try to be surpassed before challenging yesterday's highs.
A higher move will lead back to last week's high level which is around 0.68200 before the price records the latest 2-week high level.
