AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 5.61% against the USD and closed at 0.6517 on Friday.
LME Copper prices declined 0.8% or $45.0/MT to $5,573.0/MT. Aluminium prices fell 0.5% or $8.0/MT to $1,663.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.6524, with the AUD trading 0.11% higher against the USD from Friday’s close.
Overnight data indicated that Australia’s, AiG performance of manufacturing index declined to a level of 44.3 in February, compared to a level of 45.4 in the previous month. On the other hand, the Commonwealth Bank manufacturing PMI advanced to a level of 50.2 in February, compared to a revised level of 49.6 in the previous month.
Elsewhere, in China, Australia’s largest trading partner, the NBS manufacturing PMI dropped to a level of 35.7 in February, compared to a level of 50.0 in the previous month. Moreover, the Caixin manufacturing PMI eased to 40.3 in February, hitting its lowest reading since the survey began in April 2004 and compared to a level of 51.1 in the previous month.
The pair is expected to find support at 0.6455, and a fall through could take it to the next support level of 0.6386. The pair is expected to find its first resistance at 0.6572, and a rise through could take it to the next resistance level of 0.6620.
Moving ahead, investors would keep an eye on Australia’s building permits for January and current account balance for 4Q followed by the Reserve Bank of Australia’s interest rate decision, slated to release overnight.
The currency pair is trading above its 20 Hr average and showing convergence with its 50 Hr moving average.
