AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD strengthened 0.39% against the USD to close at 0.7452.
LME Copper prices rose 1.40% or $63.5/MT to $4585.0/MT. Aluminium prices rose 0.31% or $5.0/MT to $1607.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.7469, with the AUD trading 0.23% higher against the USD from yesterday’s close.
Early this morning, the Reserve Bank of Australia (RBA) revealed that positive economic data, a noticeable depreciation in the Australian dollar, rise in housing prices and a more positive view on wages made the central bank hold the official cash rate steady at 1.75% at its June meeting. However, the RBA highlighted the continued absence of broader inflationary pressures and warned that inflation was expected to remain low for some time. Further, the central bank indicated that an appreciation of exchange rate could complicate the nation’s economic adjustment.
In other economic news, data showed that Australia’s house price index unexpectedly dropped 0.2% QoQ in 1Q 2016, following a 0.2% gain in the previous month.
The pair is expected to find support at 0.7436, and a fall through could take it to the next support level of 0.7403. The pair is expected to find its first resistance at 0.7494, and a rise through could take it to the next resistance level of 0.7519.
Going ahead, investors will look forward to the release of Australia’s Westpac leading index data for May, due in the early hours tomorrow.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
