AUD/USD: Australia’s business confidence advanced in July, while business conditions cooled in the same month


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.06% against the USD and closed at 0.7272.

LME Copper prices declined 0.6% or $39.0/MT to $6081.0/MT. Aluminium prices rose 0.6% or $13.0/MT to $2052.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7278, with the AUD trading 0.08% higher against the USD from yesterday’s close.

Overnight data indicated that Australia’s business confidence index advanced to a level of 7.0 in July, after recording a level of 6.0 in the prior month. On the contrary, the nation’s business conditions index eased to a level of 12.0 in July, from a revised level of 14.0 in the previous month.

Elsewhere in China, Australia’s largest trading partner, retail sales climbed 8.8% on an annual basis in July, compared to a rise of 9.0% in the prior month. Market participants had envisaged retail sales to increase 9.1%. Moreover, the nation’s industrial production rose 6.0% on a yearly basis in July, undershooting market expectations for an advance of 6.3%. In the preceding month, industrial production had registered a similar rise.

The pair is expected to find support at 0.7259, and a fall through could take it to the next support level of 0.7241. The pair is expected to find its first resistance at 0.7294, and a rise through could take it to the next resistance level of 0.7311.

Moving ahead, investors will await Australia’s Westpac consumer confidence index for August, set to release overnight.

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

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