AUD/USD: Australia’s manufacturing sector growth moderated in December


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.18% against the USD and closed at 0.7809.

LME Copper prices declined 0.8% or $59.0/MT to $7157.0/MT. Aluminium prices declined 0.2% or $4.5/MT to $2241.5/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7832, with the AUD trading 0.29% higher against the USD from yesterday’s close.

Overnight data indicated that Australia’s AiG performance of manufacturing index dropped to a level of 56.2 in December, after recording a level of 57.3 in the prior month.

Elsewhere in China, Australia’s largest trading partner, the Caixin/Markit manufacturing PMI registered an unexpected rise to a level of 51.5 in December, surging to its highest level since August 2017 and reinforcing the notion that economic growth in the world’s second largest economy has picked-up momentum. The PMI had registered a level of 50.8 in the previous month, while markets were anticipating for a fall to a level of 50.7.

The pair is expected to find support at 0.7806, and a fall through could take it to the next support level of 0.7781. The pair is expected to find its first resistance at 0.7846, and a rise through could take it to the next resistance level of 0.7861.

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

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