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


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.46% against the USD and closed at 0.7654.

LME Copper prices declined 0.3% or $21.0/MT to $6802.0/MT. Aluminium prices fell 0.1% or $3.0/MT to $2140.0/MT.

Overnight data revealed that Australia’s AiG performance of manufacturing index eased to 51.1 in October from a level of 54.2 in the previous month. The decline in the sector was due to a surge in energy costs, a higher Australian Dollar and closures in the automotive industry.

Earlier today, in China, Australia’s largest trading partner, the Caixin manufacturing PMI remained flat at 51.0 for October, meeting market expectations, thus indicating a stable pace of expansion in the sector.

In the Asian session, at GMT0400, the pair is trading at 0.7666, with the AUD trading 0.16% higher from yesterday’s close.

The pair is expected to find support at 0.7640, and a fall through could take it to the next support level of 0.7613. The pair is expected to find its first resistance at 0.7693, and a rise through could take it to the next resistance level of 0.7719.

Investors will now await the release of Australia’s trade balance and building permits data, both for September, due overnight.

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

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