AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 3.48% against the USD and closed at 0.6664 on Friday.
Elsewhere in China, Australia’s largest trading partner, China’s non-manufacturing PMI climbed to 53.6 in May, compared to a reading of 53.2 in the prior month. On the other hand, the NBS manufacturing PMI unexpectedly dropped to 50.6 in May, defying market expectations for a rise to a level of 51.0 and compared to a reading of 50.8 in the previous month.
LME Copper prices rose 1.0% or $54.0/MT to $5,332.5/MT. Aluminium prices climbed 1.0% or $14.5/MT to $1,515.0/MT.
In the Asian session, at GMT0300, the pair is trading at 0.6736, with the AUD trading 1.08% higher against the USD from Friday’s close.
Overnight data showed that Australia’s AiG performance of manufacturing index rose to 41.6 in May, compared to a reading of 35.8 in the previous month. Additionally, the Commonwealth Bank manufacturing PMI dropped to 44.0 in May, less than market consensus for a drop to a level of 42.8 and compared to a revised reading of 44.1 in the previous month.
Elsewhere in China, Australia’s largest trading partner, China Caixin manufacturing PMI advanced to 50.7 in May, more than market expectations for a rise to a level of 49.6 and compared to a reading of 49.4 in the previous month.
The pair is expected to find support at 0.6656, and a fall through could take it to the next support level of 0.6576. The pair is expected to find its first resistance at 0.6779, and a rise through could take it to the next resistance level of 0.6822.
Looking forward, traders would keep a watch on Australia’s current account balance for 1Q 2020, slated to release overnight.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
