AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD rose 0.27% against the USD and closed at 0.7676 on Friday.
LME Copper prices declined 1.1% or $67.0/MT to $5836.0/MT. Aluminium prices declined 0.3% or $4.5/MT to $1808.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7670, with the AUD trading 0.08% lower against the USD from Friday’s close, after overnight data showed that Australia’s seasonally adjusted retail sales unexpectedly fell 0.1% on a monthly basis in December, registering its first monthly decline since December 2015 and confounding market expectations for a rise of 0.3%. Retail sales had recorded a revised gain of 0.1% in the prior month.
Elsewhere in China, Australia’s largest trading partner, the Caixin services PMI fell to a level of 53.1 in January, following a reading of 53.4 in the prior month.
The pair is expected to find support at 0.7627, and a fall through could take it to the next support level of 0.7584. The pair is expected to find its first resistance at 0.7704, and a rise through could take it to the next resistance level of 0.7738.
Going ahead, investors will direct their attention to the Reserve Bank of Australia’s (RBA) interest rate decision, scheduled tomorrow. Also, Australia’s AiG performance of construction index for January, scheduled to release tonight, will garner a lot of market attention.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
