AUD/USD: Aussie extends its gains in the Asian session


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.59% against the USD and closed at 0.7018.

Elsewhere in China, Australia’s largest trading partner, the People’s Bank of China (PBoC), in its interest rate decision, kept its key interest rate unchanged at 3.85%, as widely expected.

LME Copper prices rose 0.2% or $3.0/MT to $1,621.0/MT. Aluminium prices declined 0.6% or $38.0/MT to $6,416.5/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7025, with the AUD trading 0.10% higher against the USD from yesterday’s close.

Separately, the Reserve Bank of Australia (RBA), in its latest meeting minute, indicated that there was no requirement to adjust its package of policy measures and accommodative approach would be maintained for as long as necessary. Meanwhile, officials agreed that negative interest rates in Australia remained “extraordinarily unlikely”. Moreover, the minutes highlighted that global economic outlook remained uncertain and would depend upon containment of the virus.

The pair is expected to find support at 0.6988, and a fall through could take it to the next support level of 0.6952. The pair is expected to find its first resistance at 0.7048, and a rise through could take it to the next resistance level of 0.7072.

Moving forward, traders would keep a watch on Australia’s Westpac leading index and retail sales, both for June, slated to release overnight.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

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