AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD weakened 0.62% against the USD to close at 0.9642, after the CB leading index for Australia dropped to a negative 0.2% in August from a growth of 0.3% in the previous reading. This put to rest expectations of a rise in Reserve Bank of Australia’s benchmark interest rates, which would have normally followed a more-than-expected rise in consumer inflation in the third quarter.
LME Copper prices declined 0.8% or $59.5/MT to $7200.5/MT. Aluminium prices fell 0.4% or $7.5/MT to $1822.0/MT.
In the Asian session, at GMT0300, the pair is trading at 0.9647, with the AUD trading marginally higher from yesterday’s close. Earlier today, a report from China, Australia’s largest trading partner, showed that the HSBC manufacturing PMI gained momentum after bottoming out in 3Q, rising to a reading of 50.9 in October, more than market expectations for a rise to 50.5, and up from a level of 50.2 registered in the preceding month.
The pair is expected to find support at 0.9588, and a fall through could take it to the next support level of 0.9528. The pair is expected to find its first resistance at 0.9725, and a rise through could take it to the next resistance level of 0.9802.
Investors would take cues from RBA Deputy Governor, Philip Lowe’s speech, expected to commence later today.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
