It is the second day in a row that the Australian dollar (AUD) has risen against the US dollar (USD). While the AUD/USD currency pair has been on a downward trend for the past two weeks, the new week shows a positive trend by displaying a green mark on the graph.

The recent increase in the AUD/USD pair could be related to the release of the Reserve Bank of Australia’s (RBA) interest rate adjustments.

Today’s interest rate was declared by the central bank. According to FXStreet.com, the RBA interest rate remained unchanged (0.1 percent) this month, compared to the previous month’s 0.1 percent reading.

In addition to creating the country’s monetary policy, the RBA sets interest rates on overnight money. If the RBA takes a hawkish stance on the country’s inflationary forecast and raises interest rates, the Australian economy will benefit. In general, a high reading indicates a bullish trend for the AUD/USD pair, and vice versa.

The AUD/USD pair is now consolidating around 0.7091 as of this writing. On the downside, the pair may cling around support levels, protecting the AUD/USD from further decline while also favorably contributing to the direction of growth.

While on the opposite side of the pair’s price, there is the number of resistances standing to restrict the forward movement of AUDUSD.

And the consumer price index from the US Bureau of Labor Statistics (BLS) will be released on December 10, 2021. Economists predict that it might register a reading of as high as 6.8% in November relative to the 6.2% figure of the month before.

The CPI is a price movement indicator by comparing the retail prices of a typical shopping basket of goods and services. Inflation reduces the purchasing power of the US dollar. The CPI is a measure of inflation and changes in purchasing behavior.

Conclusion

Regarding the current movement of the AUD/USD pair, investing at this level may not be a problem because it appears that it will soon surpass the levels of resistance and reach their high.