AUDUSD Movement
For the 24 hours to 23:00 GMT on Friday, AUD weakened 0.30% against the USD to close at 1.0026, after series of disappointing economic data from China, Australia’s biggest trading partner, dented investor sentiment.
In China, industrial production rose 9.3% (YoY) in April, the lowest level since May 2009,
while retail sales surprised the market by slowing to a 14.1% rise, the lowest level in 14 months.
In the Asian session, at GMT0300, the pair is trading at 1.0009, with the AUD trading 0.17% lower from Friday’s close.
Losses were capped, after the People’s Bank of China stated that reserve ratios would fall 50 basis points, effective May 18.
Data released this morning showed that Australian home loans, on a seasonally adjusted basis, rose 0.3% in March compared to the fall of 2.5% in February.
LME Copper prices declined 1.4% or $11.5/MT to $8079.8/ MT. Aluminium prices declined 0.6% or $11.5/MT to $1991.8/ MT.
The pair is expected to find support at 0.9978, and a fall through could take it to the next support level of 0.9946. The pair is expected to find its first resistance at 1.0059, and a rise through could take it to the next resistance level of 1.0109.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
