AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD weakened 0.10% against the USD to close at 0.9432, as investors reacted negatively to the World Bank’s decision to lower its estimates on China’s growth outlook. The World Bank now expects the Chinese economy to expand by 7.5% this year, down from its April forecast of 8.3% and during 2014 the growth is estimated at 7.7%, down 0.3% point from the previous prediction.
LME Copper prices rose 0.3% or $23.0/MT to $7171.0/MT. Aluminium prices advanced 0.1% or $1.5/MT to $1791.0/MT.
In the Asian session, at GMT0300, the pair is trading at 0.9423, with the AUD trading 0.10% lower from yesterday’s close. In Australia, a report showed that National Australia Bank’s business confidence rose to a reading of 12.0 in September, following a reading of 4.0 seen in the previous month. Meanwhile, National Australia Bank’s business conditions advanced to a reading of -4.0 in September, compared to a level of -7.0 registered in the preceding month.
Separately, data from China, Australia’s largest trading partner, showed that the HSBC China service PMI fell to a level of 52.4 in September, compared to a figure of 52.8 recorded in the month earlier.
The pair is expected to find support at 0.9390, and a fall through could take it to the next support level of 0.9357. The pair is expected to find its first resistance at 0.9453, and a rise through could take it to the next resistance level of 0.9483.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
