AUD/USD: Australia’s manufacturing activity slowed in January


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.28% against the USD and closed at 0.7579.

In economic news, Australia’s AiG performance of manufacturing index eased to a level of 51.2 in January, compared to a reading of 55.4 in the previous month.

LME Copper prices rose 1.1% or $64.0/MT to $5921.0/MT. Aluminium prices rose 0.8% or $13.5/MT to $1820.5/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7558, with the AUD trading 0.28% lower against the USD from yesterday’s close.

Early morning data showed that, in China, Australia’s largest trading partner, the NBS manufacturing PMI eased to a level of 51.3 in January, compared to market expectations of a fall to a level of 51.2 and after recording a level of 51.4 in the previous month. On the contrary, the nation’s NBS non-manufacturing PMI edged-up to a level of 54.6 in January. In the previous month, the PMI had registered a level of 54.5.

The pair is expected to find support at 0.7529, and a fall through could take it to the next support level of 0.75. The pair is expected to find its first resistance at 0.7596, and a rise through could take it to the next resistance level of 0.7634.

Moving ahead, market participants will focus on Australia’s trade balance and building approvals, both for December, slated to release tomorrow.

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

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