AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD rose 0.04% against the USD and closed at 0.8084.
LME Copper prices declined 0.2% or $13.0/MT to $7049.0/MT. Aluminium prices declined 1.0% or $22.5/MT to $2229.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.8076, with the AUD trading 0.1% lower against the USD from yesterday’s close, following weaker-than-expected inflation data from Australia.
Data revealed that Australia’s consumer price index (CPI) advanced 0.6% on a quarterly basis in the three months to December 2017, against market expectations for a rise of 0.7%, making it less likely for the central bank to hike interest rate in the near-term. The CPI had registered a similar rise in the previous quarter.
Elsewhere in China, Australia’s largest trading partner, the NBS manufacturing PMI dropped more-than-expected to a level of 51.3 in January, hitting an 8-month low level, affirming that economic growth in the world’s second largest economy is beginning to moderate. Market participants expected the PMI to drop to a level of 51.5, compared to a level of 51.6 in the prior month. On the contrary, the nation’s NBS non-manufacturing PMI surprised to the upside, climbing to a 4-month high level of 55.3 in January, compared to a level of 55.0 in the prior month and defying market estimates for a fall to a level of 54.9.
The pair is expected to find support at 0.8041, and a fall through could take it to the next support level of 0.8007. The pair is expected to find its first resistance at 0.8112, and a rise through could take it to the next resistance level of 0.8149.
Going ahead, traders would eye the release of Australia’s AiG performance of manufacturing index for January and building approvals for December, scheduled to release overnight.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
