AUD/USD: Aussie Dollar trading on a weaker footing this morning


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.07% against the USD and closed at 0.8053 on Friday.

LME Copper prices declined 0.9% or $62.5/MT to $6780.0/MT. Aluminium prices declined 0.1% or $3.0/MT to $2072.0/MT.

Over the weekend, data indicated that in China, Australia’s largest trading partner, the consumer price index (CPI) advanced to a seven-month high of 1.8% YoY in August, more than market expectations for a rise of 1.6%. In the prior month, the CPI had advanced 1.4%. Moreover, the nation’s producer price index (PPI) climbed more-than-anticipated by 6.3% in August, jumping to a four-month high and following a gain of 5.5% in the preceding month. Markets had anticipated the PPI to increase 5.6%.

In the Asian session, at GMT0300, the pair is trading at 0.8048, with the AUD trading 0.06% lower against the USD from Friday’s close.

The pair is expected to find support at 0.8012, and a fall through could take it to the next support level of 0.7977. The pair is expected to find its first resistance at 0.8104, and a rise through could take it to the next resistance level of 0.8161.

Going ahead, market participants will closely monitor Australia’s NAB business confidence index for August, due to release in the early hours of tomorrow.

The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.

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