AUD/USD: Australia’s economy expanded more than expected in the fourth quarter


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 4.63% against the USD and closed at 0.6584.

LME Copper prices rose 0.5% or $28.0/MT to $5,668.0/MT. Aluminium prices climbed 1.3% or $21.5/MT to $1,706.0/MT.

In the Asian session, at GMT0400, the pair is trading at 0.6602, with the AUD trading 0.27% higher against the USD from yesterday’s close.

Overnight data showed that Australia’s AiG performance of construction index advanced to a level of 42.7 in February, compared to a level of 41.3 in the prior month. Additionally, the Commonwealth Bank services PMI climbed to 49.0 in February, compared to a level of 48.4 in the previous month. Moreover, the nation’s gross domestic product (GDP) increased 0.5% on a quarterly basis in 4Q 2019, more than market anticipations for a rise of 0.3% and compared to a revised rise of 0.6% in the previous quarter.

Elsewhere, in China, Australia’s largest trading partner, the Caixin services PMI unexpectedly plunged to 26.5 in February, indicating the sharpest decline in total Chinese business activity and registering its first contraction since the survey began in late 2005. In the prior month, the PMI had recorded a reading of 51.8 in the previous month.

The pair is expected to find support at 0.6532, and a fall through could take it to the next support level of 0.6461. The pair is expected to find its first resistance at 0.6659, and a rise through could take it to the next resistance level of 0.6715.

Going ahead, traders would keep a close watch on Australia’s trade balance data for January, due overnight.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

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