AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 0.62% against the USD and closed at 0.7099.
LME Copper prices rose 0.1% or $3.0/MT to $6536.0/MT. Aluminium prices declined 0.3% or $5.5/MT to $1893.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7094, with the AUD trading 0.07% lower against the USD from yesterday’s close.
Overnight data showed that, in Australia, the CBA manufacturing PMI dropped to a level of 52.9 in February, compared to a reading of 53.1 in the previous month. However, the AiG performance of manufacturing index registered a rise to 54.0 in February. In the prior month, the index had recorded a level of 52.5.
Elsewhere in China, Australia’s largest trading partner, the Caixin/Markit manufacturing PMI contracted to a level of 49.9 in February, higher than market consensus for a gain to a level of 48.5. The PMI had registered a level of 48.3 in the previous month.
The pair is expected to find support at 0.7070, and a fall through could take it to the next support level of 0.7045. The pair is expected to find its first resistance at 0.7134, and a rise through could take it to the next resistance level of 0.7173.
Going forward, traders would closely monitor Australia’s building approvals, CBA services PMI,
trade balance data and retail sales along with the Reserve Bank of Australia’s interest rate decision, all scheduled to release next week.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
