AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD strengthened 0.22 % against the USD to close at 0.8947.
LME Copper prices rose 0.2% or $13.0/MT to $7109.0/MT. Aluminium prices declined 0.5% or $8.5/MT to $1654.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.8939, with the AUD trading 0.09% lower from yesterday’s close. Earlier today, the Reserve Bank of Australia (RBA), in its monetary policy statement, upgraded its 2014-growth outlook on the Australian economy and also raised its inflation forecast for the current year. Additionally, the central reiterated its earlier view for the need of stability in interest rates for a sustained period of time in the economy.
In economic news, a report showed that the AiG performance of construction index in Australia edged down to a reading of 48.2 in January, from a figure of 50.8 recorded in the previous month. Separately, a report from China, Australia’s largest trading partner, revealed that the HSBC service PMI in the nation eased to a reading of 50.7 in January, from previous month’s level of 50.9.
The pair is expected to find support at 0.8913, and a fall through could take it to the next support level of 0.8887. The pair is expected to find its first resistance at 0.8973, and a rise through could take it to the next resistance level of 0.9007.
The currency pair is trading just below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
