AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD strengthened marginally against the USD to close at 0.7202.
Yesterday, in China, Australia’s largest trading partner, the PBoC lowered the nation’s GDP for the next year to 6.8%, while trimmed its forecast to a 6.9% expansion from 7.0% estimated earlier for 2015. The central bank further indicated that weak earnings of manufacturers burdened with excess capacity will weigh down the nation’s economy but also stated that its stimulus measures will gradually have a positive impact on the economy.
LME Copper prices declined 0.07% or $3.0/MT to $4583.0/MT. Aluminium prices rose 0.03% or $0.5/MT to $1478.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7178, with the AUD trading 0.33% lower from yesterday’s close.
The pair is expected to find support at 0.7134, and a fall through could take it to the next support level of 0.7090. 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 0.7325.
Going ahead, market participants will look forward to Australia’s CB leading indicator data for October, scheduled to be released tonight. Additionally, China’s MNI business sentiment indicator and house price index data, due in the early hours tomorrow, will also attract investor attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
