RBA Deviates From Forecast, AUD/USD Continues To Plunge!

<p>&nbsp;The movement of the Australian dollar in the Asian session this morning began to change direction compared to yesterday due to the market's reaction to the Australian central bank meeting.</p><p><br /></p><p>The Reserve Bank of Australia (RBA) did not meet the forecast to raise interest rates, instead interest rates were maintained at 4.10% at the latest policy meeting.</p><p><br /></p><p>The missed expectations have invited the depreciation of the Aussie dollar in the initial reaction to the results of the meeting being announced.</p><p><br /></p><p>The market was seen as unsurprised by the decision and expected interest rates to remain on hold until the September meeting.</p><p><br /></p><p>The RBA however still signaled that policy tightening measures still need to continue, but will depend on the latest data published after this.</p><p><br /></p><p>The price chart of the AUD/USD currency pair saw a drop in price again this morning below the 0.67000 level.</p><p><br /></p><p>If you look at Monday's movement pattern yesterday, the price has managed to display an increase to reach a level around 0.67400.</p><p><br /></p><p><br /></p><p>But the signal turned bearish again after today's decline has crossed the Moving Average 50 (MA50) support level on the 1-hour time frame on the AUD/USD chart.</p><p><br /></p><p>The decline is expected to continue towards the 0.66300 level which is the price support tested at the end of last week's trading.</p><p><br /></p><p>A lower drop if it crosses that level will expect the 0.65400 zone as the next target that will be tested by the price.</p><p><br /></p><p>However, if the price bounces back above the MA50, the 0.67000 level will likely try to be surpassed before challenging yesterday's highs.</p><p><br /></p><p>A higher move will lead back to last week's high level which is around 0.68200 before the price records the latest 2-week high level.</p>