AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD strengthened 0.21% against the USD to close at 0.7693.
Yesterday, the RBA Governor, Glenn Steven, opined that globally central banks are finding hard to stimulate demand by easing monetary policies, thereby also posing risk to the financial stability. Further, he also said that inflation looks quite low world over and the central bank’s primary objective might change from price stability to financial stability sometime in future.
LME Copper prices declined 0.80% or $46.0/MT to $5721.0/MT. Aluminium prices rose 0.27% or $4.5/MT to $1646.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.7726, with the AUD trading 0.42% higher from yesterday’s close.
Overnight data indicated that Australia’s AiG performance of manufacturing index eased to 44.2 in June, after registering a reading of 52.3 in the previous month.
Early morning data showed that building approvals in Australia rebounded more than expected by 2.4%, compared to market expectations of a 1.2% rise. It followed a revised drop of 5.2% recorded in April.
Elsewhere, in China, Australia’s biggest trading partner, the manufacturing PMI remained unchanged at a level of 50.2 in June, even though markets expected it to advance to a level of 50.4. Meanwhile, the nation’s non-manufacturing PMI edged up to 53.8 in June, from May’s level of 53.2. On the other hand, the final HSBC manufacturing PMI in China rose to a reading of 49.4 in June, compared to prior month’s level of 49.2, while markets expected it to advance to 49.6.
The pair is expected to find support at 0.7677, and a fall through could take it to the next support level of 0.7628. The pair is expected to find its first resistance at 0.7757, and a rise through could take it to the next resistance level of 0.7789.
Going forward, investors await the release of Australia’s trade balance data, scheduled in the early hours tomorrow.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
