AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD weakened 1.61% against the USD to close at 0.7032.
LME Copper prices declined 1.05% or $53.0 /MT to $5000.0 /MT. Aluminium prices rose 1.26% or $18.5 /MT to $1491.5 /MT.
Data showed that, Australia’s foreign reserves dropped to A$64.3 billion in October, from A$72.7 billion in the previous month.
In the Asian session, at GMT0400, the pair is trading at 0.7055, with the AUD trading 0.33% higher from Friday’s close.
Over the weekend, in China, Australia’s largest trading partner, trade surplus rose less-than-expected to $61.6 billion in October, from $60.3 billion in the previous month. Investors had expected it to increase to $64.8 billion. The nation’s imports fell more-than-anticipated by 18.8% YoY during the same month, after recording a drop of 20.4% in the previous month. Further, Chinese exports declined 6.9% YoY in October, higher than market expectations for a fall of 3.2%. In the prior month, exports had dropped 3.7%.
The pair is expected to find support at 0.6994, and a fall through could take it to the next support level of 0.6933. The pair is expected to find its first resistance at 0.7144, and a rise through could take it to the next resistance level of 0.7233.
Moving ahead, market participants will look forward to Australia’s home loans data for September, scheduled to be released in the early hours tomorrow. In addition to this, investors will closely watch China’s consumer price inflation data for October, due tomorrow morning.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
