Despite a slight depreciation in the past week, the Australian dollar has managed to maintain an upward trend against the US dollar which has continued for 3 weeks in a row.
Although last week's policy meeting saw interest rates maintained by the Reserve Bank of Australia (RBA), governor Michele Bullock said discussions with board members did not see interest rate cuts in the near term.
Thus, the Australian dollar managed to maintain a good performance while the US dollar was burdened by pressure after the Federal Reserve (Fed) implemented an aggressive interest rate cut at its latest meeting.
If you look at the chart of the AUD/USD currency pair, the price that fell at the beginning of September then gradually increased and continued for the following weeks until the end of September.
Until the trading at the beginning of yesterday's week which was the last day of September also the closing for the third quarter of 2024, the price on the AUD/USD chart had been above the 0.69000 zone.
This is the highest level since February 2023 trading.
Showing a modest uptrend, the highest level recorded since Monday yesterday is around 0.69400.
Price movement slowed below that level throughout the Asian session this morning (Tuesday) while hovering above the Moving Average 50 (MA50) support line on the chart's 1-hour time frame.
Signals for prices to remain bullish which will expect the latest highs to continue to be recorded again this week.
A target for a higher move higher is seen at the 0.70000 peak to be tested by the price.
There is not yet any clear indication for a change in price direction, but investors remain cautious.
If the price breaks below the 0.69000 level, a bearish pattern is likely to start before the price heads around 0.68000.
A lower decline if continued will move the target to around 0.67000 anyway.
