AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD weakened 0.27% against the USD to close at 0.7095.
LME Copper prices declined 1.24% or $60.0/MT to $4765.0/MT. Aluminium prices declined 1.25% or $18.5/MT to $1457.5/MT.
Yesterday, the RBA Assistant Governor, Christopher Kent, stated that the changing nature of China’s development leaves little potential for recovery in global commodity prices. He further mentioned that the growth in China’s consumer demand and services sector provided a major opportunity for Australia.
In the Asian session, at GMT0400, the pair is trading at 0.7087, with the AUD trading 0.11% lower from yesterday’s close.
Early today morning, in the minutes of its 03 November board meeting, the RBA gave an upbeat assessment of the nation’s economy and indicated that the combination of record low interest rates and a lower Australian dollar continues to drive domestic growth in the country. Further, the central bank mentioned that the slowdown in China and the Asian region remains its biggest concern and that the nation’s subdued inflation leaves scope for additional monetary stimulus, if necessary. Additionally, the central bank forecasted that the Australian economy is set to strengthen gradually in the next two years as the drag on GDP growth from declining mining investment wanes and as activity progressively shifts to non-mining sectors of the economy.
The pair is expected to find support at 0.7066, and a fall through could take it to the next support level of 0.7046. The pair is expected to find its first resistance at 0.7121, and a rise through could take it to the next resistance level of 0.7155.
Moving ahead, investors will look forward to Australia’s CB leading indicator and Westpac leading indices data, scheduled to be released overnight.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
