AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD strengthened 0.40% against the USD to close at 1.0393.
Late yesterday, the Assistant Governor of the Reserve Bank of Australia (RBA), Guy Debelle, stated that although foreign ownership in Australian government bonds has tapered from its recent highs, demand remains strong and net purchases still have continued.
Moreover, the Deputy Governor of the Reserve Bank of Australia (RBA), Philip Lowe, opined that despite a recent boom in mining investment, stronger currency and higher savings rate have helped the Australian economy to keep a check on inflation and maintain lower interest rates.
LME Copper prices declined 2.9% or $226.5/MT to $7555.5/MT. Aluminium prices declined 2.5% or $48.5/MT to $1895.5/MT.
In the Asian session, at GMT0400, the pair is trading at 1.0388, with the AUD trading marginally lower from yesterday’s close.
This morning, the minutes of the Reserve Bank of Australia’s (RBA) latest monetary policy meeting revealed that policymakers believe that although certain parts of the economy have started to respond to low interest rates, there is a potential to lower interest rates further, if required. It also indicated that inflation outlook remains contained, thereby giving scope to the central bank to pursue further accommodative monetary policy stance.
Meanwhile, in China, Australia’s biggest trading partner, the Conference Board’s leading economic index climbed to a reading of 257.5 in February, compared to a revised reading of 254.3 reported last month.
The pair is expected to find support at 1.0355, and a fall through could take it to the next support level of 1.0323. The pair is expected to find its first resistance at 1.0416, and a rise through could take it to the next resistance level of 1.0445.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
