AUDUSD Movement
On Friday, the AUD weakened 0.78% against the USD to close at 0.9381, hurt by the Reserve Bank of Australia’s (RBA) decision to trim its growth forecasts on the Australian economy for 2014.
On Sunday, a report from China, Australia’s biggest trading partner, showed that consumer inflation rate in the nation rose less-than-expected to 3.2% (YoY) in October, following a 3.1% increase seen in the previous month. Another report showed that industrial production in China rose 10.3% (YoY) in October, more than market expectations for a 10.0% rise and compared to 10.2% increase witnessed in September.
LME Copper prices rose 0.1% or $6.5/MT to $7125.5/MT on Friday. Aluminium prices declined 0.6% or $11.0/MT to $1765.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.9383, with the AUD trading tad higher from Friday’s close. Earlier today, an official report from Australia revealed that home loans in the nation rose more-than-expected 4.4% in September, following a 4.0% drop registered in the preceding month.
The pair is expected to find support at 0.9331, and a fall through could take it to the next support level of 0.9280. The pair is expected to find its first resistance at 0.9455, and a rise through could take it to the next resistance level of 0.9528.
Investors are keenly awaiting the release of Westpac consumer confidence index, due later today, for further direction in the Aussie.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
