Glenn Stevens, Governor of the Reserve Bank of Australia announced on Monday, December 1, that the central bank would raise its key interest rate for the 3rd month in a row - this time from 3.50 up to 3.75%.

Stevens cited reasons including a resumption of world economic growth, using phrases such as credit is expanding for housing at a solid pace, and measures of confidence and business conditions indicate that the economy is in a gradual recovery. Not stated in the official statement from the RBA was China's demand for iron ore and other natural resources.

The board will not meet again until February.

The Aussie reached a low of 0.8947 at the end of October 2008, and has since been heading in a general upward trend ever since.

Price reached our original 138% Fib target at 0.9288 on December 2nd, then bounced down to the 118% Fib at 0.9238, only to return to the 138% Fib level once again.

If the 0.9288 level is broken and holds as support, we may be headed for a bonus round up to the 161% level at 0.9346; if this breaks and retests as support, price could then go on up to the 200% Fib level at 0.9440

If price fails to break and close above the 0.9288 level, then we would likely see the 118-138% range continue. And if we manage to break below 0.9238 plus retest successfully as resistance form underneath, then the next likely stopping points would be the 0% level at 0.9194, and then the 23% level at 0.9136

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