AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 0.07% against the USD and closed at 0.6776.
LME Copper prices declined 0.8% or $44.5/MT to $5718.5/MT. Aluminium prices declined 1.0% or $16.5/MT to $1704.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.6777, with the AUD trading marginally higher against the USD from yesterday’s close.
The minutes of the Reserve Bank of Australia’s (RBA) latest monetary policy meeting showed that policymakers debated the recent interest rate cut, citing that it could raise house prices and fail to deliver a boost to the economy. Moreover, minutes showed that the recent rate cut was due to concerns over escalating inflation and inability of unemployment levels to support rise in wages. Additionally, the central bank signalled that it may cut interest rates again despite housing bubble risks.
Elsewhere, in China, Australia’s largest trading partner, the consumer price index (CPI) rose 3.0% on an annual basis in September, compared to an advance of 2.8% in the prior month. Market participants had envisaged the CPI to climb 2.9%. Meanwhile, the nation’s producer price index (PPI) declined 1.2% on an annual basis in September, meeting market expectations. In the previous month, the PPI had recorded a fall of 0.8%.
The pair is expected to find support at 0.6755, and a fall through could take it to the next support level of 0.6733. The pair is expected to find its first resistance at 0.6795, and a rise through could take it to the next resistance level of 0.6813.
Looking forward, traders would await Australia’s Westpac leading index for September, slated to release overnight.
The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.
