As expected, the Reserve Bank of Australia's (RBA) monetary policy meeting today saw interest rates remain at 4.10% for the fourth time.
The Australian dollar fell as soon as the results of the meeting were announced while a follow-up statement by the new governor, Michele Bullock was watched.
In the policy report presented by Bullock, inflation in Australia is said to have passed the peak but still remains high.
Policy tightening measures are still needed to keep inflation down to the target level.
The impact on the Aussie dollar currency can be seen on the price movement on the AUD/USD currency pair chart.
On Monday's trading yesterday, the price has made a decline to the 0.63700 level and moved below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart, giving a bearish signal.
The decline continued at the opening of the Asian session this morning (Tuesday) before a significant plunge was shown after the RBA meeting.
The price surpassed last week's lows around 0.63300 and approached the concentration level of 0.63000 at the opening of the European session.
The decline in price is likely to extend into the next session with the expectation to reach the next target at 0.62000.
But if the situation changes, a rebound will be witnessed like the movement pattern at the end of last week.
The price increase will test the initial resistance at 0.63700 before heading towards the 0.64400 zone which was the price opening level earlier this week.
