AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD weakened 0.22% against the USD to close at 0.8922.
LME Copper prices declined 0.5% or $39.5/MT to $ 7286.0/MT. Aluminium prices were flat at $1745.5/MT.
In his testimony to the House of Representatives Economic Committee, the Reserve Bank of Australia (RBA) Governor, Glenn Stevens reiterated his earlier stance and stated that the interest rates could come down further and the central bank has maintained an “open mind” about further shifts on monetary policy. He further added that the Australian dollar is ‘uncomfortably high’, and suggested that balanced growth in the economy would probably require a lower exchange rate.
Separately, the University of Melbourne revealed that Australia’s Westpac leading index declined 0.1% on a monthly basis in November, following a 0.1% increase reported in the previous month.
In the Asian session, at GMT0400, the pair is trading at 0.8906, with the AUD trading 0.18% lower from yesterday’s close.
The pair is expected to find support at 0.8873, and a fall through could take it to the next support level of 0.8841. The pair is expected to find its first resistance at 0.8946, and a rise through could take it to the next resistance level of 0.8987.
With no major economic releases scheduled today in Australia, traders would shift their focus to the RBA bulletin tomorrow, which would discuss the economic and financial developments in the nation.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
