AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD weakened 1.10% against the USD to close at 0.9031.
Yesterday, the Fitch rating agency, in a note, dampened negative sentiments for a drastic decline in Chinese demand for Australian commodities, by mentioning that “the fundamentals underpinning China’s demand for key commodities from Australia remain unchanged.”
LME Copper prices declined 0.4% or $25.5/MT to $6446.0/MT. Aluminium prices fell 1.1% or $18.5/MT to $1672.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.9018, with the AUD trading 0.14% lower from yesterday’s close. Earlier today, the Reserve Bank of Australia (RBA), in a research paper, opined that a 10% real depreciation in the Aussie could help the nation’s GDP to rise by 1% over the next two to three years while a temporary 10% depreciation in the currency could add up to 0.25 to 0.5% in the GDP over one to two years.
In economic news, the RBA reported that foreign exchange transaction in the nation amounted to A$369.0 million in February, compared to A$362.0 million of foreign exchange transaction in the preceding month.
The People’s Bank of China has weakened the China’s Yuan’s reference rate to the the weakest level since November 6, in order to get rid of speculative positioning and abolish appreciation expectations once and for all.
The pair is expected to find support at 0.8969, and a fall through could take it to the next support level of 0.8920. The pair is expected to find its first resistance at 0.9098, and a rise through could take it to the next resistance level of 0.9178.
Traders are expected to keep a tab on the CB leading index, expected to be released in Australia, later during the day.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
