AUD/USD: Australia’s consumer inflation expectations dropped in April


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.62% against the USD and closed at 0.7168.

LME Copper prices declined 0.8% or $51.0/MT to $6447.0/MT. Aluminium prices rose 0.1% or $1.0/MT to $1852.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7159, with the AUD trading 0.13% lower against the USD from yesterday’s close.

Overnight data showed that Australia’s consumer inflation expectations declined to 3.9% in April, compared to 4.1% in the prior month.

Elsewhere in China, Australia’s largest trading partner, the consumer price index (CPI) rose to a 5-month high level of 2.3% on an annual basis in March, in line with market expectations. The CPI had recorded a rise of 1.5% in the prior month. Moreover, the nation’s producer price index (PPI) advanced 0.4% on a yearly basis in March, rising for the first time in 9-months and meeting market consensus. The PPI had registered a gain of 0.1% in the previous month.

The pair is expected to find support at 0.7121, and a fall through could take it to the next support level of 0.7083. The pair is expected to find its first resistance at 0.7186, and a rise through could take it to the next resistance level of 0.7213.

Amid lack of economic releases in Australia today, traders would focus on global macroeconomic events for further direction.

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

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