AUD/USD Falls Low After RBA Keeps Interest Rate at 4.35%

<p>&nbsp;Focus on trading in the Asian session today (Tuesday) is directed at the outcome of the Australian central bank's monetary policy meeting.</p><p><br /></p><p>As expected, the Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.35% for the latest meeting.</p><p><br /></p><p>Governor Michele Bullock presented monetary policy by underlining that further policy-setting steps will depend on the current rate of inflation.</p><p><br /></p><p>Members of the meeting remained committed to bringing inflation down to the central bank's target level.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p><br /></p><p>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.</p><p><br /></p><p>The decline continued today after the reaction effect of the RBA meeting saw the price break below the 0.66000 level.</p><p><br /></p><p>As of the beginning of the European session, the price has reached around 0.65720 and looks set to continue its decline lower.</p><p><br /></p><p>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.</p><p><br /></p><p>However, if the price reverses to make an increase again, the 0.66000 level will try to be crossed before testing the MA50 barrier.</p><p><br /></p><p>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.</p>