The Australian dollar traded weak in the Asian session this morning (Tuesday) leading to the opening of the European session following the focus on the release of the minutes of the Australian central bank meeting.
Looking at minute details, the Reserve Bank of Australia (RBA) gave a dovish signal at its latest policy meeting which considered temporarily halting interest rate hikes.
Therefore, after a 25 basis point interest rate hike at the March meeting, it is likely that no rate hike will be implemented at the April meeting.
The central bank's monetary policy, which is seen to be heading towards a looser phase, has had a depressing effect on the value of its currency.
Thus, on the price chart of the AUD/USD pair, the price started to show a decline in the Asian session this morning.
Like the pattern displayed earlier in the week yesterday, the price drop also occurred in the Asian session to a level around 0.66700.
However, failing to cross the Moving Average 50 (MA50) support level on the 1-hour time frame on the AUD/USD chart again saw the price rise again past the 0.67000 level.
Even so, the barrier at the height of 0.67300 has still not been successfully overcome before the bearish price signal started to appear today following the price movement started to be below the MA50 support.
The price which has dropped below the 0.67000 level is seen to continue its decline lower to last week's support level around 0.66000.
The 0.65700-0.65400 zone will be the next focus on the price's continued decline.
On the other hand, if the price reverses to make a rebound above the 0.67000 level, the early week barrier will be crossed before the price is driven higher to the 0.67700 zone.
For the expectation of the next increase, the 0.68300 zone will be reached before the price goes to the height of around 0.69000.
