AUD/USD: Australia’s Westpac consumer confidence declined in August


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.06% against the USD and closed at 0.7915.

LME Copper prices rose 0.5% or $31.0/MT to $6364.0/MT. Aluminium prices rose 3.2% or $61.0/MT to $1981.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7873, with the AUD trading 0.53% lower against the USD from yesterday’s close.

Early morning data showed that Australia’s Westpac consumer confidence index fell to a level of 95.5 in August. The index had recorded a reading of 96.6 in the prior month. Also, the nation’s seasonally adjusted home loan approvals increased less-than-anticipated by 0.5% in June, compared to a revised rise of 1.1% in the previous month.

Elsewhere in China, Australia’s largest trading partner, the consumer price index (CPI) registered a rise of 1.4% on an annual basis in July, underscoring market expectations for a rise of 1.5%. The CPI had climbed 1.5% in the prior month. Moreover, the nation’s producer price index (PPI) advanced less-than-expected by 5.5% in July, compared to market expectations for a rise of 5.6%. In the previous month, the PPI had registered a similar rise.

The pair is expected to find support at 0.7838, and a fall through could take it to the next support level of 0.7802. The pair is expected to find its first resistance at 0.7926, and a rise through could take it to the next resistance level of 0.7978.

Moving ahead, investors will focus on Australia’s consumer inflation expectation for August, slated to release in the early hours of tomorrow.

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

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