AUD/USD: Australia’s construction sector expanded at its fastest pace in 12 years in July


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.31% against the USD and closed at 0.7932 on Friday.

LME Copper prices rose 0.6% or $40.0/MT to $6330.0/MT. Aluminium prices declined 0.1% or $1.5/MT to $1890.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7939, with the AUD trading 0.09% higher against the USD from Friday’s close, after recent data showed that Australia construction sector activity surged in July.

Overnight data revealed that Australia’s AiG performance of construction index rose to a level of 60.5 in July, notching its highest level since 2005. In the previous month, the index had registered a reading of 56.0.

The pair is expected to find support at 0.7893, and a fall through could take it to the next support level of 0.7848. The pair is expected to find its first resistance at 0.7982, and a rise through could take it to the next resistance level of 0.8026.

Looking forward, Australia’s NAB business confidence index for July, scheduled for release in the early hours tomorrow, will attract significant amount of market attention.

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

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