As expected, the Reserve Bank of Australia (RBA) kept interest rates at 4.10% for the September policy meeting just now.
Outgoing Governor Philip Lowe delivered his final monetary policy with key details scrutinized by markets.
Policy tightening is seen as still needing to be continued, but the policy maintained for now will give time to evaluate the impact of rate hikes that have been implemented before on the economy.
The Australian dollar experienced a significant decline after the meeting results until trading resumed at the opening of the European session.
On the AUD/USD currency pair chart, it can be seen that the price has plunged below the 0.64000 level.
The price movement on Monday yesterday was quite flat until the price opened in the Asian session this morning at around 0.64600 before the price plunge took place.
A clear bearish pattern is displayed in addition to the price staying below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the AUD/USD chart.
The price that made the decline in the European session tested the support level at 0.63700 which was last tested in mid-August trading.
With that momentum, the price drop is expected to continue beyond the support level and is about to head towards the 0.63000 target.
Reaching the 0.63000 level would record the latest low since November 2022.
But if the price jumps again, the 0.64000 to 0.64500 zone will be the resistance zone to be tested before the increase continues higher.
If it crosses the MA50 barrier and yesterday's high level, it will be a signal of a change in the bullish trend again for the price with a target that will be directed at the 0.65400 high zone.
