AUDUSD Movement
On Friday, the AUD weakened 0.26% against the USD to close at 0.9438, despite a string of positive data points released in Australia. The US Dollar regained lost ground against the Aussie after the ISM manufacturing PMI in the US advanced more than market expectations for October and after two top Fed policymakers hinted that an improvement in the US labour market bolstered the case for the central bank to taper its quantitative easing (QE) measures in the near future.
On the economic front, Reserve Bank of Australia (RBA) reported that its commodity index SDR declined 1.0% (YoY) in October, following a 3.1% drop registered in the preceding month.
LME Copper prices rose 0.3% or $21.5/MT to $7255.5/MT. Aluminium prices declined 0.8% or $15.5/MT to $1817.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.9480, with the AUD trading 0.45% higher from Friday’s close. Earlier today, in Australia, a report showed that, on a seasonally adjusted basis, retail sales in the nation rose 0.8% (MoM) in September, more than market estimate for a 0.4% rise and compared to previous month’s 0.5% increase. However, Australia’s house price index advanced 1.9% (QoQ) in the third quarter, less than analysts’ consensus for a rise of 2.1% and compared to a 2.7% increase registered in the earlier quarter.
The pair is expected to find support at 0.9435, and a fall through could take it to the next support level of 0.9391. The pair is expected to find its first resistance at 0.9510, and a rise through could take it to the next resistance level of 0.9541.
Investors look forward to AiG Performance of Services Index later in the day, to get hints on the direction of AUD.
The currency pair is trading just above its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
