The Australian dollar (AUD) has climbed against the US dollar for the third day in a row. For the past four weeks, the AUD/USD currency pair has been on an upward trend, and the current week has shown a good trend by flashing a green mark on the graph.

The publication of the Reserve Bank of Australia’s (RBA) interest rate adjustments may have contributed to the recent spike in the AUD/USD pair.

The central bank announced today’s interest rate. The RBA interest rate remained steady (0.1 percent) this month, according to FXStreet.com, compared to the previous month’s 0.1 percent reading.

The RBA sets interest rates on overnight money in addition to establishing the country’s monetary policy. The Australian economy will benefit if the RBA takes a hawkish position on the country’s inflation forecast and hike interest rates. In general, a high reading for the AUD/USD pair implies a bullish trend and vice versa.

As of this writing, the AUD/USD pair is stabilizing around 0.7261. On the downside, the pair could hold to support levels, preventing the AUD/USD from additional loss while also contributing positively to the growth direction.

Furthermore, the Chicago Purchasing Managers Index from ISM-Chicago, Was formerly released yesterday with a reading of 56.3 in February, lower than the 63 predicted by experts.

The Chicago Purchasing Managers Index (CPMI) gauges the health of the Illinois, Indiana, and Michigan economies. This measure is an excellent predictor of business developments.

Conclusion

Given the present direction of the AUD/USD pair, investing at this level may not be a problem, as it indicates that it will shortly surpass resistance levels and hit new highs.