AUDUSD Movement
On Friday, the AUD strengthened 0.34% against the USD to close at 0.7928.
LME Copper prices declined 0.63% or $40.5/MT to $6396.5/MT. Aluminium prices declined 0.35% or $6.5/MT to $1864.0/MT.
In the Asian session, at GMT0300, the pair is trading at 0.7894, with the AUD trading 0.43% lower from Friday’s close.
Earlier today, the NAB reported that the business conditions index in Australia fell to 4.00 in April, following a level of 6.00 in the prior month, while the business confidence index remained unchanged at 3.0 in April from March.
Over the weekend, data showed that in China, Australia’s biggest trading partner, consumer prices rose 1.5% YoY in April, missing market forecast for a 1.6% advance. Meanwhile, the producer price index recorded a drop of 4.60% on an annual basis in April, compared to a similar fall in the prior month, while markets were expecting the index to fall 4.40%.
Separately, the PBoC slashed its benchmark interest rate by a quarter percentage point to 5.10% from 5.35%, in order to spur economic activity and boost growth in the nation.
The pair is expected to find support at 0.7848, and a fall through could take it to the next support level of 0.7802. The pair is expected to find its first resistance at 0.7955, and a rise through could take it to the next resistance level of 0.8016.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
