AUD/USD: Australia’s trade surplus surged to its highest level in four months in September, building approvals gained


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.27% against the USD and closed at 0.7675.

LME Copper prices rose 1.7% or $116.0/MT to $6918.0/MT. Aluminium prices gained 2.2% or $48.0/MT to $2188.0/MT.

Overnight data showed that Australia’s trade surplus widened more than expected to A$1.75 billion in September on the back of a boost in exports, from a revised surplus of A$873.0 million in the prior month. Markets had expected the trade surplus to increase to A$1.20 billion. Also, the nation’s exports rose 3.0% in September, while imports remained unchanged. Separately, building approvals in Australia rose 1.5% MoM in September, confounding market expectations for a 1.0% decline. In the previous month, building approvals had risen 0.4%.

In the Asian session, at GMT0400, the pair is trading at 0.7725, with the AUD trading 0.65% higher from yesterday’s close.

The pair is expected to find support at 0.7679, and a fall through could take it to the next support level of 0.7634. The pair is expected to find its first resistance at 0.7748, and a rise through could take it to the next resistance level of 0.7772.

Traders will now keep an eye on Australia’s AiG performance of service index for October, set to release overnight.

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

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