AUD/USD: Australia’s Westpac consumer confidence notched a 4-year high level in January


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.1% against the USD and closed at 0.7958.

LME Copper prices declined 2.2% or $157.0/MT to $7023.0/MT. Aluminium prices declined 2.5% or $55.5/MT to $2172.0/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7966, with the AUD trading 0.1% higher against the USD from yesterday’s close, after data indicated that Australia’s Westpac consumer confidence index registered a rise of 1.8% to a level of 105.1 in January, jumping to its highest level since December 2013, highlighting that sentiment amongst consumers continues to recover on the backdrop of improving confidence around the economy and the job market. In the prior month, the index had registered a reading of 103.3.

The pair is expected to find support at 0.7936, and a fall through could take it to the next support level of 0.7905. The pair is expected to find its first resistance at 0.7998, and a rise through could take it to the next resistance level of 0.8029.

Moving ahead, market participants would keep a close watch on Australia’s unemployment rate for December and consumer inflation expectations for January, both scheduled to release overnight.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

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