Markets were shocked towards the end of the Asian session today when the results of the Australian central bank meeting fell short of forecasts.
The Reserve Bank of Australia (RBA) has raised interest rates by 25 basis points to 3.85% at its latest meeting, compared to forecasts to keep interest rates unchanged at 3.60%.
This shows that the tightening of monetary policy by the RBA has not yet ended with the objective still being to lower inflation to the target level.
This surprising situation also had an impact on the movement of the Australian dollar currency, which soared as soon as the results of the meeting were announced.
On the price chart of the AUD/USD currency pair, the slow price around 0.66300 then surged to the 0.67000 level.
Prices are seen to maintain the upward pattern of the beginning of the week yesterday during the Asian and European sessions, although it decreased slightly again in the New York session due to the strengthening of the US dollar.
The price surge from the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the AUD/USD chart also gives an indication for a bullish movement for the price.
A higher move is expected after breaking through the barrier at the 0.67000 zone before the price resumes its rise towards the previous highs around 0.67700 and the 0.68000 resistance zone.
If the US dollar weakens, the price can continue to rise higher until it reaches the target at 0.69000.
On the other hand, if this situation of price surge is only temporary, a further decline in price can be expected to return to the support level reached at the end of last week at 0.65800.
Next, with new indications for a bearish movement, the price will again push the price to record another new low this week, possibly towards 0.65000.
