Focus on trading in the Asian session today (Tuesday) is directed at the outcome of the Australian central bank's monetary policy meeting.
As expected, the Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.35% for the latest meeting.
Governor Michele Bullock presented monetary policy by underlining that further policy-setting steps will depend on the current rate of inflation.
Members of the meeting remained committed to bringing inflation down to the central bank's target level.
The market is digesting the results of the meeting with analysts seeing the same situation for the RBA as the Federal Reserve (Fed) which is to take a wait and see step.
The Australian dollar was seen to suffer a decline in the Asian session following the opening of the European session following the reaction to the meeting.
The strengthening sustained by the US dollar at the beginning of the week is seen to put pressure back on other major currencies in the market including the Aussie dollar.
On the chart of the AUD/USD currency pair, the price has displayed a bearish pattern and is beginning to signal a change in the bearish trend.
The price which reached a fresh 4-month high at the opening of the Asian session yesterday at around 0.66900 then experienced a decline for several consecutive sessions until today's European session.
An early sign for a bearish movement is when the price starts to drop below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the AUD/USD chart yesterday.
The decline continued today after the reaction effect of the RBA meeting saw the price break below the 0.66000 level.
As of the beginning of the European session, the price has reached around 0.65720 and looks set to continue its decline lower.
The zone around 0.654000 is seen to be tested and if the price still penetrates lower, the price can fall to the target of 0.65000 or 0.64500.
However, if the price reverses to make an increase again, the 0.66000 level will try to be crossed before testing the MA50 barrier.
The continued higher rise will also lead to the high level reached earlier in the week with the 0.67000 resistance zone being the focus of the price.
