AUD/USD: Aussie reverses its losses in the Asian session


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 1.11% against the USD and closed at 0.7154 on Friday.

LME Copper prices declined 0.3% or $16.5/MT to $6,437.0/MT. Aluminium prices rose 1.3% or $22.0/MT to $1,744.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7163, with the AUD trading 0.13% higher against the USD from Friday’s close.

Elsewhere in China, Australia’s largest trading partner, the consumer price index rose 2.7% on a yearly basis in July, more than market expectations for a rise of 2.6% and compared to a rise of 2.5% in the prior month. Meanwhile, the producer price index declined 2.4% on a yearly basis in July, less than expectations for a drop of 2.5% and compared to a fall of 3.0% in the previous month.

The pair is expected to find support at 0.7129, and a fall through could take it to the next support level of 0.7095. The pair is expected to find its first resistance at 0.7213, and a rise through could take it to the next resistance level of 0.7263.

Moving ahead, traders would keep a watch on Australia’s NAB business confidence and conditions indices, both for July, slated to release overnight.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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