Can withstand even the Australian dollar exhibiting a strengthening earlier this week, the reason the US dollar is weakening to?
Other factors are seen to support the further strengthening of the Aussie dollar as the minutes report of the Reserve Bank of Australia (RBA) policy meeting that was published during the recent Asian session has hinted at a more aggressive central bank interest rate hike after this.
The RBA at its policy meeting in early May had implemented an interest rate hike that exceeded expectations of 25 basis points to 0.35%, but in fact policymakers were seen considering a higher rate hike of up to 40 basis points!
This gives the impression that a rate hike of at least 25 basis points will be made at the June meeting to continue the policy tightening measures following Australia's inflation which has reached a 20-year high.
On the price chart the AUD/USD pair has again seen a resurgence of prices earlier this week continuing the rise that took place at the close of trading last weekend.
The latest low of the price reached last week was in the 0.68300 zone, the lowest level since June 2020.
However, the price has made a rebound from the zone and gave a signal of a bullish trend change to investors after the price passed the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the AUD/USD chart.
The initial decline was seen at the opening of this week’s trading in the Asian session yesterday below the 0.6900 level before the price rose again until the end of the New York session closing the trade around 0.69700.
The rise in prices continued in the Asian session this morning (Tuesday), following a positive reaction from investors to the minutes of the RBA meeting published recently which supported the Aussie dollar to continue rising while the US dollar remained gloomy in the market.
Until the resumption of trading at the beginning of the European session, the price has passed the level of 0.7000 and is expected to continue rising higher with the target heading towards the focus zone around 0.71000.
A change in the bullish trend will push the price to the previously reached high level again around 0.72500 in early May.
However, if the bearish trend is not over, the price will decline back to the level around 0.69000 first before showing a signal for a lower price decline.
Furthermore, the support zone at 0.68300 will be tested again this week after supporting the price increase again last week.
The United States (US) retail sales data that will be published in the New York session soon is believed to influence the direction of price movements.
