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


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.36% against the USD and closed at 0.7207 on Friday.

LME Copper prices rose 1.0% or $61.0/MT to $6173.0/MT. Aluminium prices rose/declined 0.9% or $17.0/MT to $1962.0/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7218, with the AUD trading 0.15% higher against the USD from Friday’s close.

In economic news, Australia’s seasonally adjusted home loan approvals unexpectedly rose 2.2% on a monthly basis in October. Home loan approvals had registered a drop of 1.0% in the prior month.

Elsewhere in China, Australia’s largest trading partner, the consumer price index (CPI) rose 2.2% on a yearly basis in November, compared to a reading of 2.5% in the preceding month. Market participants had envisaged the CPI to record a reading of 2.4%. Moreover, the producer price index (PPI) advanced 2.7% on an annual basis in November, in line with market anticipation. The PPI had registered a reading of 3.3% in the previous month.

The pair is expected to find support at 0.7183, and a fall through could take it to the next support level of 0.7149. The pair is expected to find its first resistance at 0.7247, and a rise through could take it to the next resistance level of 0.7277.

Going forward, traders would keep an eye on Australia’s 3Q house price index followed by the NAB business conditions and business confidence indices, both for November, set to release overnight.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

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