AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD weakened 0.37% against the USD to close at 1.0233, as risk appetite waned after Italian parliamentary elections failed to produce a clear winner, raising prospects of extended political uncertainty in the nation.
Meanwhile, the Reserve Bank of Australia’s (RBA) board member, Roger Corbett reportedly rejected pressure on the central bank to lower interest rates further in an effort to push the Australian Dollar lower, warning that further rate cuts could artificially inflate house prices and hurt the broader economy.
LME Copper prices declined 1.0% or $80.5/MT to $7785.0/MT. Aluminium prices declined 1.6% or $33.0/MT to $1971.0/MT.
In the Asian session, at GMT0400, the pair is trading at 1.0222, with the AUD trading 0.11% lower from yesterday’s close, following disappointing Q4 FY2012 construction data in Australia. Data released this morning indicated that, on a seasonally adjusted basis, construction spending in Australia fell 0.1% in the Q4 FY2012, from a revised 1.9% rise in the Q3 FY2012. Market had expected a 1.5% rise.
The pair is expected to find support at 1.0186, and a fall through could take it to the next support level of 1.0151. The pair is expected to find its first resistance at 1.0272, and a rise through could take it to the next resistance level of 1.0323.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
