AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD weakened 0.72% against the USD to close at 0.9457, as a dismal employment report from Australia spooked investors’ confidence in the Aussie.
LME Copper prices declined 1.1% or $81.0/MT to $7119.0/MT. Aluminium prices fell 0.5% or $8.5/MT to $1776.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.9461, with the AUD trading marginally higher from yesterday’s close. Earlier today, the Reserve Bank of Australia (RBA), in its monetary policy statement, slightly lowered its growth forecasts on the Australian economy for 2014, adding that the benefits of rate cuts might not be seen until 2015. The central bank now expects the Australian economy to grow between 2% and 3% in 2014, down from previous estimate of growth between 2.25% to 3.25%.
Separately, a report from China, Australia’s largest trading partner, showed that trade surplus in the nation surge to a level of $31.1 billion in October, way above analysts’ expectations for a rise to $23.9 billion from a $15.2 billion surplus registered in the previous month.
The pair is expected to find support at 0.9422, and a fall through could take it to the next support level of 0.9382. The pair is expected to find its first resistance at 0.9506, and a rise through could take it to the next resistance level of 0.9550.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
