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


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 5.52% against the USD and closed at 0.6523.

LME Copper prices rose 1.6% or $84.5/MT to $5,249.5/MT. Aluminium prices rose 0.6% or $9.0/MT to $1,441.5/MT.

In the Asian session, at GMT0300, the pair is trading at 0.6515, with the AUD trading 0.12% lower against the USD from yesterday’s close, following the release of the Reserve Bank of Australia’s meeting minutes.

The RBA, in its meeting minutes warned about an “unprecedented” economic contraction due to the coronavirus pandemic. Further, members indicated that the central bank would not increase the cash rate target until progress is made towards full employment and it is confident that inflation will be sustainably within the 2-3% target band. Meanwhile, officials expect the country’s GDP to drop by 10% in the first half and 6% for 2020. Further, the RBA indicated that outlook remained uncertain, however, if coronavirus infection rates continued to decline and restrictions were eased, “recovery could be expected to start later in 2020”.

The pair is expected to find support at 0.6443, and a fall through could take it to the next support level of 0.6371. The pair is expected to find its first resistance at 0.6569, and a rise through could take it to the next resistance level of 0.6623.

Looking forward, traders would keep a watch on Australia’s Westpac leading index for April, slated to release overnight.

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

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