The Australian Central Bank Policy Meeting on Tuesday had a huge impact on the Australian dollar currency movement.
Reserve Bank of Australia (RBA) fulfilled expectations to increase interest rates by 25 basic points from 4.10% to 4.35%.
However, what was the investor's concern at first was a significant decline in the Australian dollar.
On the basis, measures to raise interest rates by the central bank will drive a spike in the value of the currency.
The depreciation of the Aussie dollar was due to a follow -up statement delivered by the central bank interpreted by Dovish.
The RBA signaled a decrease in confidence in the need for additional interest rate hikes and would depend on the economic data present.
Thus, although interest rates were raised, the Aussie dollar showed a significant decline in value yesterday.
On the AUD/USD currency chart, it can be noted that the price of 0.65000 to almost 0.64000 in the New York session yesterday.
There was a slow bounce to continue in the Asian session this morning (Wednesday), but prices were still moving below the Moving Average 50 (MA50) barrier at the 1 hour frame on the chart for bearish signals.
The lower decline is still expected but it is quite limited as the US Dollar currency also featured a blatant performance yesterday.
If the decline continues, the price target is to test the zone around 0.63700.
If the bearish movement is still ongoing, the support zone at 0.63000 can be priced.
On the other hand, if the price jumped beyond the MA50 barrier, the price hike is seen to try to overcome the 0.65000 level.
Subsequently the increase will continue to reach the resistance zone at 0.65400 for the latest 3 -month highest record.
