On December 7, the Reserve Bank of Australia published an official monetary policy statement. In addition, the official cash rate was revealed. The announcement caused a recovery of the Australian Dollar’s value. By 09:00 GMT, the rate had already recovered 43 base points or 0.60%.
Meanwhile, from a technical analysis perspective, the rate had reached and pierced the resistance zone at 0.7092/0.7096. The pair did not extend its decline, as it found resistance in the 0.7100 level.
A passing of the 0.7100 level’s resistance would most likely result in a test of the trend line, which connects the November 2, November 16 and December 1 high levels. In addition, note the 200-hour simple moving average near 0.7110 and the weekly R1 simple pivot point at 0.7119.
However, a decline of the AUD/USD might reach the support of the weekly simple pivot point at 0.7056, the 0.7050 mark and the 50-hour simple moving average near 0.7040. Below these levels, the 0.7000 mark might once again act as support.
