AUD/USD: Australia’s manufacturing sector advanced in January, building approvals slumped in December


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.12% against the USD and closed at 0.8058.

LME Copper prices rose 0.7% or $51.5/MT to $7100.5/MT. Aluminium prices declined 0.2% or $4.5/MT to $2224.5/MT.

In the Asian session, at GMT0400, the pair is trading at 0.8051, with the AUD trading 0.09% lower against the USD from yesterday’s close.

Overnight data revealed that Australia’s AiG performance of manufacturing index registered a rise to a level of 58.7 in January, after recording a reading of 56.2 in the prior month. On the contrary, the nation’s seasonally adjusted building approvals plummeted 20.0% on a monthly basis in December, higher than market expectations for a drop of 7.6%. Building approvals had risen 11.7% in the previous month.

Elsewhere in China, Australia’s largest trading partner, the Caixin/Markit manufacturing PMI index remained steady at a level of 51.5 in January, meeting market expectations.

The pair is expected to find support at 0.8018, and a fall through could take it to the next support level of 0.7986. The pair is expected to find its first resistance at 0.8100, and a rise through could take it to the next resistance level of 0.8150.

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

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