AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD strengthened 0.47% against the USD to close at 0.7183.
LME Copper prices rose 0.22% or $11.5/MT to $5149.0/MT. Aluminium prices rose 1.24% or $18.0/MT to $1470.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7209, with the AUD trading 0.37% higher from yesterday’s close.
Overnight data showed that Australia’s AiG performance of services index fell to a level of 48.9 in October, from a reading of 52.3 in the previous month.
Earlier today, data revealed that the country’s retail sales increased 0.4% MoM in September, as expected, following a similar rise in August. Further, Australia’s trade deficit dropped to A$ 2,317.0 million in September, recording its smallest trade deficit in seven months, compared to a deficit of A$ 2711.0 million in the previous month. Investors had expected the trade deficit to come in at A$ 2,900.0 million.
In China, Australia’s largest trading partner, the Caixin services PMI attained a three-month high reading of 52.0 in October, from a level of 50.5 in the previous month, thus cooling down concerns of a weak economy.
Separately, the Chinese President, Xi Jinping, cut the nation’s economic growth target to 6.5% in the new five-year plan, from a targeted growth rate of 7.0% estimated earlier.
The pair is expected to find support at 0.7141, and a fall through could take it to the next support level of 0.7073. The pair is expected to find its first resistance at 0.7252, and a rise through could take it to the next resistance level of 0.7294.
Moving ahead, speeches by the RBA Governor, Glenn Stevens and by the RBA Deputy Governor, Philip Lowe will attract a significant amount of investor attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
