Today's market focus is on the outcome of the Australian central bank's monetary policy meeting which has seen the fall in the value of the Aussie dollar at the end of the Asian session.
The Reserve Bank of Australia (RBA) as expected kept interest rates unchanged at 4.35% for the fourth consecutive meeting.
A follow-up speech by governor Michelle Bullock drew attention as markets speculated that the central bank would maintain its hawkish tone.
Bullock said current interest rates are at the right level to push inflation toward the central bank's target.
He stated that they may not need to raise interest rates again after this.
According to Bullock's view, the option to raise interest rates is there, but they don't necessarily have to implement that action.
Markets judging the RBA in no rush to raise interest rates despite rising inflation are seen to be fueling the early effects of a weakening Aussie dollar.
Examining the chart of the AUD/USD currency pair, the price in the past week has reached a recent high for the 3-week trading period near 0.66500.
But at the beginning of the week yesterday, the price movement was flat and failed to continue the rising pattern.
Continuing today, the drop in prices began to occur after the reaction to the RBA meeting decision a while ago.
Investors received a bearish price signal after the decline crossed the Moving Average 50 (MA50) support line on the 1-hour time frame on the AUD/USD chart.
Continuing at the beginning of the European session, the price has moved down below the 0.66000 level and is expected to head around 0.65400 if the momentum is maintained.
However, if the price manages to bounce back above the 0.66000 level beyond the MA50 line, it will give an early indication for the price to resume the rising pattern of last week.
The high level of 0.66500 will try to be overcome before the rise continues towards the concentration zone at 0.67000.
