For the 24 hours to 23:00 GMT, the AUD declined 0.76% against the USD and closed at 0.7339.
LME Copper prices declined 0.8% or $51.0/MT to $6595.0/MT. Aluminium prices declined 1.4% or $30.0/MT to $2153.0/MT.
In the Asian session, at GMT0300, the pair is trading at 0.7342, with the AUD trading marginally higher against the USD from yesterday’s close.
Overnight data indicated that Australia’s seasonally adjusted building approvals surprisingly dropped to 3.2% on a monthly basis in May, compared to a revised fall of 5.6% in the previous month. Market participants had envisaged the building approvals to record a flat reading.
Earlier today, the Reserve Bank of Australia (RBA), at its June rate decision, opted to keep the benchmark interest rate steady at 1.50%, as widely expected. Meanwhile, RBA Governor, Philip Lowe highlighted optimism over the jobs market and signalled “solid” employment growth in the future.
The pair is expected to find support at 0.7303, and a fall through could take it to the next support level of 0.7265. The pair is expected to find its first resistance at 0.7388, and a rise through could take it to the next resistance level of 0.7435.
Trading trend in the Aussie will be determined by Australia’s trade balance figures and retail sales data, both for May, due to be released overnight. Also, the AiG performance of service index for June, will keep investors on their toes.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.