AUDUSD Movement
On Friday, the AUD weakened 0.50% against the USD to close at 0.8752, hurt by lacklustre producer inflation data.
On Saturday, a report from China, Australia’s largest trading partner, showed that the NBS manufacturing PMI in the nation declined to a reading of 50.5 in January, in-line with market estimates and compared to a level of 51.0 recorded in December.
LME Copper prices declined 0.9% or $64.0/MT to $7091.0/MT. Aluminium prices fell 1.3% or $22.5/MT to $1663.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.8752, with the AUD trading flat from Friday’s close. Early morning, in Australia, the AiG performance of manufacturing index edged down to a reading of 46.6 in January, from a level of 47.6 recorded in the previous month. Meanwhile, building permits in the nation declined 2.9% (MoM) in December, following a 0.3% drop in the preceding month. Separately, a report from China showed that the non-manufacturing PMI eased to a reading of 53.4 in January, from previous month’s level of 54.6.
The pair is expected to find support at 0.8702, and a fall through could take it to the next support level of 0.8652. The pair is expected to find its first resistance at 0.8794, and a rise through could take it to the next resistance level of 0.8836.
Amid a lack of major economic releases from Australia, traders are expected to keep a tab on global economic news for further guidance in the pair.
The currency pair is trading just above its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
