AUD/USD: Aussie reverses its losses in the morning session


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 10.73% against the USD and closed at 0.6163.

LME Copper prices declined 0.2% or $11.0/MT to $4,763.0/MT. Aluminium prices fell 0.7% or $11.0/MT to $1,495.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.6188, with the AUD trading 0.41% higher against the USD from yesterday’s close.

Overnight data showed that Australia’s private sector credit demand advanced 2.8% on an annual basis in February. In the previous month, the private sector credit had recorded a revised rise of 2.6%. Additionally, new home sales unexpectedly rose 6.2% on a monthly basis in February, confounding market expectations for a fall of 1.9% and compared to a rise of 5.7% in the prior month.

Elsewhere in China, Australia’s largest trading partner, the non-manufacturing PMI rose to a level of 52.3 in March, compared to a level of 29.6 in the earlier month. Moreover, the NBS manufacturing PMI climbed to level of 52.0 in March. In the previous month, the manufacturing PMI had recorded a reading of 35.7.

The pair is expected to find support at 0.6113, and a fall through could take it to the next support level of 0.6037. The pair is expected to find its first resistance at 0.6229, and a rise through could take it to the next resistance level of 0.6269.

Moving forward, investors would keep a watch on Australia’s AiG Performance of Mfg Index and commonwealth Bank manufacturing PMI, both for March, along with building permits for February, slated to release overnight.

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

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