AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 0.44% against the USD and closed at 0.7526.
LME Copper prices declined 0.60% or $41.0/MT to $6628.0/MT. Aluminium prices rose 0.53% or $12.0/MT to $2285.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.7531, with the AUD trading 0.07% higher against the USD from yesterday’s close.
According to minutes of the Reserve Bank of Australia’s (RBA) May meeting, policymakers shared a broad agreement that interest rate should remain at the current low level in the foreseeable future, as inflation is likely to remain sluggish in the wake of stubbornly weak wage growth. Further, officials reiterated that any future movement in interest rate is more likely to be up than down.
Elsewhere in China, Australia’s largest trading partner, retail sales grew 9.4% YoY in April, compared to an advance of 10.1% in the prior month and falling short of market consensus for a rise of 10.0%. Meanwhile, the nation’s industrial production rose more-than-estimated by 7.0% on a yearly basis in April, following a gain of 6.0% in the previous month. Market expectation was for industrial production to rise 6.4%.
The pair is expected to find support at 0.7515, and a fall through could take it to the next support level of 0.7498. The pair is expected to find its first resistance at 0.7555, and a rise through could take it to the next resistance level of 0.7578.
Going ahead, traders would closely monitor Australia’s Westpac consumer confidence index for May, due to release overnight.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
