AUD/USD: Australia’s HIA new home sales dropped in July


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.63% against the USD and closed at 0.7905.

LME Copper prices declined 0.6% or $42.0/MT to $6755.0/MT. Aluminium prices declined 1.2% or $25.5/MT to $2066.5/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7907, with the AUD trading a tad higher against the USD from yesterday’s close.

Earlier today, data indicated that Australia’s HIA new home sales eased 3.7% on a monthly basis in July. New home sales had registered a drop of 6.9% in the previous month. On the contrary, the nation’s private sector credit registered a rise of 0.5% on a monthly basis in July, meeting market expectations. The private sector credit had climbed 0.6% in the prior month.

Elsewhere in China, Australia’s largest trading partner, the NBS manufacturing PMI unexpectedly advanced to a level of 51.7 in August, defying market consensus for a fall to a level of 51.3. The PMI had registered a reading of 51.4 in the prior month. On the other hand, the nation’s non-manufacturing PMI recorded a drop to a level of 53.4 in August, following a reading of 54.5 in the previous month.

The pair is expected to find support at 0.7864, and a fall through could take it to the next support level of 0.7821. The pair is expected to find its first resistance at 0.7973, and a rise through could take it to the next resistance level of 0.8039.

Going ahead, traders will focus on Australia’s AiG performance of manufacturing index for August, slated to release overnight.

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

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