Entering the market opening early in the European session, the Australian dollar was seen starting to show gains after investors focused on the outcome of a policy meeting by the Reserve Bank of Australia (RBA) recently.
As expected, interest rates remained unchanged at a low of 0.10% and the central bank also maintained a bond -buying program in an effort to support the economy.
While the development of the Covid-19 case in Australia remains worrying, Governor Philip Lowe is positive about the recovery in Australia and expects increased growth projections.
Market risk-on sentiment is currently also seen supporting high-yielding currencies such as the Aussie dollar to move well in the market while the US dollar is showing a dismal performance.
On the price chart of the AUD/USD pair, the signal of a price trend change is more clearly seen after the price surged above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame last Friday.
The price was seen more flat at the opening of trading earlier in the week yesterday before the gains continued in the Asian session this morning past the resistance zone at 0.75400.
The price has shown an increase of around 70 pips since the beginning of the Asian session until the beginning of the European session testing the important level of 0.76000.
The level became a resistance zone on the previous week’s rise before investors saw the price decline again.
If the price manages to break the resistance, a higher rise in the price will be expected to head to the next focus zone above 0.765000 to maintain the bullish trend of the price.
For a re -fall situation, the 0.75400 zone is seen as the nearest support zone before the lower decline will return towards the level around 0.74800.
