AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD weakened marginally against the USD to close at 0.9367.
LME Copper prices rose 0.5% or $32.0/MT to $6999.5/MT. Aluminium prices edged down marginally by $0.5/MT to $1737.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.9386, with the AUD trading 0.20% higher from yesterday’s close. Earlier today, the minutes from the Reserve Bank of Australia (RBA) latest policy meeting revealed the possibility of further rate cuts, if required. The minutes further clarified that the board members believed that the Australian economy continues to perform below par and the Australian Dollar remains “uncomfortably high”. However, policymakers opined that previous rate cuts were working and supported the economic activity.
On the economic front, the Conference Board reported that Australia’s leading index rose 0.3% in September, following a 0.2% drop registered in the previous month. Separately, a report from China, Australia’s largest trading partner, showed that, on a year to date basis, foreign direct investment (FDI) in the nation rose 5.77% (YoY) in October, compared to a 6.20% rise witnessed in the earlier month.
The pair is expected to find support at 0.9352, and a fall through could take it to the next support level of 0.9317. The pair is expected to find its first resistance at 0.9421, and a rise through could take it to the next resistance level of 0.9455.
Market participants are expected to keep a watch on the release of the Westpac leading index, due later today, for further guidance in the Aussie.
The currency pair is trading below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
