AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD weakened 1.01% against the USD to close at 1.0256, after the Reserve Bank of Australia (RBA) cut interest rates a three-year low of 3.25% and left the door open for more easing.
Additionally, the RBA cited darker global background, falling export prices and a high currency as the main factors weighing on the nation’s economic outlook.
LME Copper prices rose 1.8% or $147.8/MT to $8339.0/MT. Aluminium prices rose 1.7% or $35.5/MT to $2103.8/MT.
In the Asian session, at GMT0300, the pair is trading at 1.0218, with the AUD trading 0.37% lower from yesterday’s close, after country’s trade deficit reached the widest since 2008. Further weighing on currency, a private report showed that Australian sales of newly built homes fell to the lowest level on record in August.
Data released in Australia showed that the total trade deficit on a seasonally adjusted basis widened to A$ 2.027 billion in August, compared with a revised deficit of A$1.53 billion in July.
Additionally, the Housing Industry Association (HIA) reported that the new home sales dropped 5.3% (MoM) to 5,383 in August, from 5,682 in July to reach their lowest point since 1997. Separately, the Australian Industry Group performance of services index fell 0.5 points to 41.9 in September.
Meanwhile, in China, official non-manufacturing Purchasing Managers’ Index fell to 53.7 in September, from 56.3 in August.
The pair is expected to find support at 1.0165, and a fall through could take it to the next support level of 1.0112. The pair is expected to find its first resistance at 1.0324, and a rise through could take it to the next resistance level of 1.0429.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
