While still in a volatile situation, market sentiment assessed a gradual recovery has supported the recovery for commodity currency trading in addition to the continued depreciation of the US dollar earlier in the week.
The Australian dollar showed positive movement in the Asian session this morning (Tuesday) with a focus on the minutes of the Australian central bank meeting published.
The Reserve Bank of Australia (RBA) is expected to maintain a loose monetary policy until 2024 and interest rates will not be raised until it reaches the 2-3%target.
The minutes of the meeting were seen to have no effect on the devaluation of the Aussie dollar, instead supported by a statement by Australian Treasury Secretary Steven Kennedy who said Australia's economic recovery was stronger than other countries.
With the US dollar depreciating factor, the price on the AUD/USD currency pair chart managed to continue its bullish pattern earlier this week despite the momentum seen to be a bit slow.
In yesterday’s trading, the price made a rebound after the decline was initially supported at the Moving Average 50 (MA50) support level on the 1 -hour time frame continued till today.
The rise is seen to continue in the European session to move towards the resistance level of 0.783000 in the SBR zone (support become resistance).
The continued higher rise will surpass last week's high to head to the 0.79200 zone before the main focus is on the 0.80000 resistance.
If a bearish situation occurs, the RBS (resistance become support) zone at 0.76500 is seen to be a support level to prevent the price from falling lower.
The price that is still continuing the next decline will head to the support zone at the range of 0.75700 and 0.75300 which was tested in March trading last year.
