AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD rose 0.50% against the USD and closed at 0.6797.
LME Copper prices rose 0.9% or $49.5/MT to $5723.0/MT. Aluminium prices rose 0.6% or $9.5/MT to $1737.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.6808, with the AUD trading 0.16% higher against the USD from yesterday’s close.
The Reserve Bank of Australia’s (RBA) Governor, Philip Lowe, stated that the central bank is prepared to further ease its record-low interest rates to zero or negative and execute quantitative easing, if required. Further, he indicated that the inflation will continue to remain below its target, while unemployment will be above 5%. Also, the central bank trimmed its economic growth outlook to 2.50% from 2.75% in 2019.
Elsewhere, in China, Australia’s largest trading partner, the consumer price index (CPI) rose 2.8% on an annual basis in July, compared to a rise of 2.7% in the previous month. Market participants had anticipated the CPI to record a gain of 2.7%.
The pair is expected to find support at 0.6776, and a fall through could take it to the next support level of 0.6743. The pair is expected to find its first resistance at 0.6831, and a rise through could take it to the next resistance level of 0.6854.
Looking ahead, traders would await Australia’s NAB business conditions and business confidence, consumer inflation expectation and unemployment rate, all set to release next week.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
