It’s a second day when the Australian dollar (AUD) inched lower against the US dollar (USD). While on the road to success for the last two weeks, the new week depreciates the currency pair AUD/USD by showing a red mark on the graph.

The recent decrease in AUD/USD might comes after the release of the Reserve Bank of Australia’s interest rate moves.

The central bank announced today’s interest rate. The RBA interest rate stayed constant (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 developing the country’s monetary policy. If the RBA holds a hawkish view towards the country’s inflationary outlook and increases interest rates, it is positive for the Australian economy. Generally speaking, a high reading is a bullish trend for the AUD/USD pair and vice versa. 

As of this writing, the AUD/USD pair consolidates around 0.7648. On the downside, the pair may hold around the support levels, which would shield the AUD/USD from further decline while also positively contributing to the direction of growth.

Secondly, yesterday The University of Melbourne released the TD Securities Inflation. FXStreet.com registered a figure of 0% in August compared to 0.5% the month before data.

TD Securities Inflation forecasts inflation in the Australian economy. The impact of rising inflation on the likelihood of a rate hike by the RBA, the more likely it is. In general, a low reading is considered bearish.

Conclusion

Concerning the current movement of the AUD/USD, investing at this level may not be problematic because it looks that it will soon surpass the levels of resistance and achieve its high.