AUD/USD: Australia’s manufacturing sector expanded at its fastest pace in 15 years in August


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.48% against the USD and closed at 0.7943.

LME Copper prices rose 0.6% or $37.0/MT to $6792.0/MT. Aluminium prices rose 2.3% or $47.0/MT to $2113.5/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7951, with the AUD trading 0.1% higher against the USD from yesterday’s close, on the back of robust manufacturing report from Australia.

Data revealed that Australia’s AiG performance of manufacturing index advanced to a level of 59.8 in August, expanding at its quickest pace since May 2002 and suggesting that manufacturing sector will propel third quarter economic growth in the resource-rich economy. The PMI had recorded a reading of 56.0 in the prior month.

Elsewhere in China, Australia’s largest trading partner, the Caixin manufacturing PMI recorded an unexpected rise to a level of 51.6 in August, notching a six-month high level. Markets had envisaged the PMI to drop to a level of 51.0, after registering a level of 51.1 in the previous month.

The pair is expected to find support at 0.7896, and a fall through could take it to the next support level of 0.7840. The pair is expected to find its first resistance at 0.7982, and a rise through could take it to the next resistance level of 0.8012.

Moving ahead, investors will closely monitor the Reserve Bank of Australia’s (RBA) interest rate decision, due next week.

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

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