AUD/USD: Australia’s manufacturing sector growth slowed in May


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined slightly against the USD and closed at 0.7570.

LME Copper prices rose 0.22% or $15.0/MT to $6825.0/MT. Aluminium prices rose 0.88% or $20.0/MT to $2285.5/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7560, with the AUD trading 0.13% lower against the USD from yesterday’s close.

Overnight data showed that Australia’s AiG performance of manufacturing index recorded a fall to a level of 57.5 in May, compared to a registered a level of 58.3 in the previous month.

Elsewhere in China, Australia’s largest trading partner, the Caixin/Markit manufacturing PMI remained unchanged at a level of 51.1 in May, against market expectations for an advance to a level of 51.2.

The pair is expected to find support at 0.7546, and a fall through could take it to the next support level of 0.7531. The pair is expected to find its first resistance at 0.7584, and a rise through could take it to the next resistance level of 0.7607.

Moving forward, investors would focus on Australia’s 1Q GDP, retail sales and trade balance data, all scheduled to release next week.

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

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