AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD strengthened 0.90% against the USD to close at 0.7690.
LME Copper prices declined 0.16% or $9.5/MT to $5915.0/MT. Aluminium prices rose 0.12% or $2.0/MT to $1695.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.7704, with the AUD trading 0.18% higher from yesterday’s close.
Earlier today, the NAB reported that business conditions index in Australia jumped to 7.0 in May, following a reading of 4.0 in the prior month, while the business confidence index also rose to 7.0 in May, from a level of 3.0 in April.
Elsewhere, in China, Australia’s biggest trading partner, consumer prices advanced less than expected by 1.2% YoY in May, compared to a 1.5% rise recorded in April. The below expected data indicated that the nation’s central bank would opt for further policy easing, as Asia’s largest economy is stalling. Meanwhile, China’s producer prices slid more than expected by 4.6% on an annual basis, registering its 39th consecutive month of decline in May.
The pair is expected to find support at 0.763, and a fall through could take it to the next support level of 0.7555. The pair is expected to find its first resistance at 0.7751, and a rise through could take it to the next resistance level of 0.7798.
Going forward, investors would focus on Australia’s Westpac consumer confidence data, scheduled in the early hours tomorrow.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
