AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 3.33% against the USD and closed at 0.6712.
LME Copper prices rose 1.1% or $65.0/MT to $5,802.0/MT. Aluminium prices declined 1.5% or $26.0/MT to $1,678.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.6689, with the AUD trading 0.34% lower against the USD from yesterday’s close, after the Reserve Bank of Australia’s meeting minutes expressed concerns about the impact of the coronavirus outbreak.
The RBA, in its latest monetary policy meeting minutes, reviewed the case for further reduction in cash rate and signalled that the board was prepared to ease monetary policy further, if needed. Further, the central bank reiterated that low interest rates would be required for an extended period to reach full employment and achieve its inflation target. Additionally, the minutes suggested that coronavirus presented a ‘material risk’ to the Chinese economy, and thus Australia.
Separately, in China, Australia’s largest trading partner, the house price index rose 6.3% in January, compared to a rise of 6.6% in the previous month.
The pair is expected to find support at 0.6671, and a fall through could take it to the next support level of 0.6653. The pair is expected to find its first resistance at 0.6720, and a rise through could take it to the next resistance level of 0.6751.
Looking ahead, market participants would keep a close watch on Australia’s Westpac leading index for January, slated to release overnight.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
