After successfully displaying an increase at the end of last week against the US dollar, the Australian dollar currency has managed to display a rising pattern for 3 days in a row.
The focus at the beginning of this week was directed to the report of the minutes of the Australian central bank meeting which was seen to have had a positive effect on the Australian dollar in the Asian session this morning (Tuesday).
Previously, the Reserve Bank of Australia (RBA) decided to raise the interest rate to 4.35% at the November meeting after the rate was maintained at 4.10% for the previous 4 meetings.
Examining the details of the minutes, the RBA sees the risk of inflation rising if interest rates are not raised.
Whether the move to raise interest rates will continue or not depends on the reading of the latest economic data as well as the assessment of economic risks.
The meeting members agreed that the current rate is still low compared to most other countries.
Looking at the price chart of the AUD/USD currency pair, the price managed to surge in the Asian session yesterday opening the early week trading well.
The rise managed to break through the 0.654000 resistance before the price flattened above that zone in the European session and the New York session.
Reacting to the minute report in the Asian session this morning, the price continued higher to around 0.65850 before retreating slightly at the market opening of the European session.
The price is expected to continue its rise to test the resistance at the 0.66000 high while continuing to record a recent 3-month high.
If it breaks through that level, the next target for the price is to reach up to around 0.67000.
However, if the price decline begins to show below the 0.65400 level again, this will give an early sign for a change in the price trend.
A continued decline lower will test the 0.65000 level before continuing the bearish trend towards around 0.64500.
