AUDUSD Movement
On Friday, the AUD strengthened 0.14% against the USD to close at 0.7781.
LME Copper prices rose 2.12% or $114.5/MT to $5505.0/MT. Aluminium prices rose 0.82% or $15.0/MT to $1837.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7774, with the AUD trading 0.09% lower from Friday’s close.
Overnight data showed that Australia’s AiG performance of manufacturing index edged up to 49.0 in January, from previous month’s reading of 46.9 in December. Meanwhile, the nation’s TD securities annual inflation gauge remained steady at 1.5% on a YoY basis in January.
Elsewhere, in China, Australia’s biggest trading partner, the HSBC manufacturing PMI rose to 49.7 in January, compared to prior month’s level of 49.6 in December.
Over the weekend, China’s Non-manufacturing PMI dropped to a level of 53.7 in January, following a reading of 54.1 recorded in previous month, while the nation’s NBS manufacturing PMI in China eased to 49.8 in January. The index had recorded a reading of 50.1 in preceding month.
The pair is expected to find support at 0.7737, and a fall through could take it to the next support level of 0.7699. The pair is expected to find its first resistance at 0.7805, and a rise through could take it to the next resistance level of 0.7836.
Going forward, investors await the RBA’s crucial interest rate decision, scheduled for tomorrow.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
