AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 0.20% against the USD and closed at 0.6890.
LME Copper prices rose 1.6% or $86.5/MT to $5,463.0/MT. Aluminium prices declined 0.8% or $12.0/MT to $1,499.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.6934, with the AUD trading 0.64% higher against the USD from yesterday’s close.
Overnight data showed that Australia’s AiG performance of construction index climbed to 24.9 in May, compared to a reading of 21.6 in the previous month. Additionally, the Commonwealth Bank services PMI rose to 26.9 in May, compared to a reading of 25.5 in the previous month. Moreover, building permits dropped 1.8% on a monthly basis in April, less than market expectations for a drop of 15.0% and compared to a fall of 4.0% in the prior month. Meanwhile, gross domestic product (GDP) fell 0.3% on a quarterly basis in the first quarter of 2020, in line with market expectations and compared to a rise of 0.5% in the prior quarter.
Elsewhere in China, Australia’s largest trading partner, the Caixin services PMI advanced to 55.0 in May, more than market expectations for a rise to a level of 50.3 and compared to a reading of 44.4 in the previous month.
The pair is expected to find support at 0.6812, and a fall through could take it to the next support level of 0.6689. The pair is expected to find its first resistance at 0.7020, and a rise through could take it to the next resistance level of 0.7105.
Moving forward, traders would keep a watch on Australia’s trade balance and retail sales, both for April, slated to release overnight.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
