AUD/USD: Australia’s services sector growth continued to slow, retail sales missed expectations


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.47% against the USD and closed at 0.7711.

LME Copper prices declined 0.9% or $63.0/MT to $6855.0/MT. Aluminium prices declined 1.6% or $36.0/MT to $2152.0/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7685, with the AUD trading 0.34% lower from yesterday’s close, following the release of disappointing macroeconomic indicators from the Australian economy.

Overnight data showed that Australia’s AiG performance of service index declined to 51.4 in October from a reading of 52.1 in the last month, diminishing chances of a rate hike by the Reserve Bank of Australia (RBA) next week. Also, the nation’s retail sales remained flat on a monthly basis in September, missing market expectations for a gain of 0.4%. In the previous month, retail sales had fallen by 0.6%.

Elsewhere in China, Australia’s largest trading partner, the Caixin services PMI rose more than expected to 51.2 in October, compared to a reading of 50.6 in the prior month.

The pair is expected to find support at 0.7668, and a fall through could take it to the next support level of 0.7651. The pair is expected to find its first resistance at 0.7716, and a rise through could take it to the next resistance level of 0.7747.

In the week ahead, RBA interest rate decision and its monetary policy statement along with the AiG performance of construction index, would be closely watched by traders.

Trading trends in the pair today are expected to be determined by global macroeconomic indicators.

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

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