AUD/USD: Aussie extends its losses in the Asian session, on RBA comments over potential rate cut


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD marginally declined against the USD and closed at 0.7170.

LME Copper prices declined 0.5% or $34.0/MT to $6456.0/MT. Aluminium prices trading flat at $1843.5/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7147, with the AUD trading 0.32% lower against the USD from yesterday’s close, following dovish comments from the Reserve Bank of Australia’s (RBA) policymakers.

The RBA, in its April meeting minutes, indicated that there was no strong case for a near-term adjustment in monetary policy. However, a rate cut would be appropriate, if inflation remained low and unemployment rose.

Elsewhere in China, Australia’s largest trading partner, new home prices rose 0.6% on a monthly basis in March, compared to 0.5% in the preceding month.

The pair is expected to find support at 0.7131, and a fall through could take it to the next support level of 0.7114. The pair is expected to find its first resistance at 0.7173, and a rise through could take it to the next resistance level of 0.7198.

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

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