AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 1.01% against the USD and closed at 0.7190 on Friday.
LME Copper prices declined 0.8% or $47.5/MT to $6019.0/MT. Aluminium prices fell 0.7% or $15.0/MT to $2112.0/MT.
In the Asian session, at GMT0300, the pair is trading at 0.7183, with the AUD trading 0.10% lower against the USD from Friday’s close.
Overnight data showed that Australia’s AIG performance of manufacturing index rose to 56.7 in August, compared to a reading of 52.0 in the previous month. Earlier in the session, Australia’s monthly retail sales recorded a flat reading in July, recording its weakest reading since December 2017 and defying market expectations for a rise of 0.3%. In the prior month, retail sales had recorded an increase of 0.4%.
Elsewhere in China, the Caixin manufacturing PMI dropped to 50.6 in August, hitting its lowest level in 14-months and compared to a reading of 50.8 in the previous month.
The pair is expected to find support at 0.7145, and a fall through could take it to the next support level of 0.7108. The pair is expected to find its first resistance at 0.7241, and a rise through could take it to the next resistance level of 0.7300.
Looking ahead, market participants would keep a close watch on Australia’s current account balance for 2Q slated to release overnight. Additionally, the Reserve Bank of Australia’s (RBA) interest rate decision due to release early morning tomorrow will keep investors on their toes.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
