AUD/USD: Australia’s building approvals sharply declined in May, manufacturing sector advanced in June


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.07% against the USD and closed at 0.7687 on Friday.

LME Copper prices rose 0.03% or $2.0/MT to $5907.5/MT. Aluminium prices rose 0.6% or $11.0/MT to $1908.5/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7675, with the AUD trading 0.16% lower against the USD from Friday’s close, following downbeat Australian building approvals data.

Data showed that Australia’s seasonally adjusted building approvals slid 5.6% on a monthly basis in May, more than market expectations for a drop of 1.3%. In the previous month, building approvals had recorded a revised rise of 4.8%. On the contrary, the nation’s AIG performance of manufacturing index rose to a level of 55.0 in June, expanding for the ninth consecutive month and following a reading of 54.8 in the prior month.

Elsewhere in China, Australia’s largest trading partner, Caixin/Markit manufacturing PMI rose more-than-expected to a level of 50.4 in June, crawling out of the contraction territory and marking a three-month high level. In the previous month, the PMI index had recorded a reading of 49.6, while markets expected for a rise to a level of 49.8.

The pair is expected to find support at 0.7660, and a fall through could take it to the next support level of 0.7644. The pair is expected to find its first resistance at 0.7698, and a rise through could take it to the next resistance level of 0.7720.

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

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