AUD/USD: Australian economy rebounded in the final three months of 2016


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.3% against the USD and closed at 0.7651.

In economic news, Australia’s AiG performance of manufacturing index advanced to a level of 59.3 in February, expanding at its quickest pace in 15 years. The index registered a level of 51.2 in the previous month.

LME Copper prices rose 0.2% or $9.0/MT to $5936.0/MT. Aluminium prices declined 0.7% or $13.0/MT to $1895.0/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7663, with the AUD trading 0.16% higher against the USD from yesterday’s close, after robust economic data in Australia boosted optimism over the health of the nation’s economy.

Data showed that Australia’s gross domestic product (GDP) advanced 1.1% on a quarterly basis in the fourth quarter of 2016, beating market expectations for a rise of 0.8%, following a surge in exports and higher household spending. In the prior quarter, GDP had fallen 0.5%.

Elsewhere in China, Australia’s largest trading partner, the NBS manufacturing PMI unexpectedly climbed to a level of 51.6 in February, expanding to a three-month high level and surpassing market expectations of a fall to a level of 51.2. In the previous month, the PMI had registered a level of 51.3. Additionally, the nation’s Caixin/Markit manufacturing PMI index surprisingly rose to a level of 51.7 in February, confounding market consensus of a fall to a level of 50.8 and following a level of 51.0 in the previous month. On the other hand, the nation’s NBS non-manufacturing PMI eased to a level of 54.2 in February, after registering a level of 54.6 in the previous month.

The pair is expected to find support at 0.7631, and a fall through could take it to the next support level of 0.7599. The pair is expected to find its first resistance at 0.7697, and a rise through could take it to the next resistance level of 0.7731.

Looking ahead, market participants will concentrate on Australia’s trade balance figures and building permits data, both for January, scheduled to release in the early hours’ tomorrow.

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

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