AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD strengthened 0.70% against the USD to close at 0.9513, buoyed by the latest batch of upbeat economic releases from its largest trading partner, China.
A report from China showed that new loans in the nation advanced to a level of ¥787.0 billion in the month of September, defying analysts’ expectation for a fall to ¥650.0 billion from a reading of ¥711.3 billion registered in the previous month. Another official data also confirmed that China’s consumer price index rose 0.8% (MoM) in September, surpassing market expectation of 0.5%.
LME Copper prices rose 1.1% or $80.5/MT to $7205.5/MT. Aluminium prices declined 0.4% or $8.0/MT to $1822.0/MT.
In the Asian session, at GMT0300, the pair is trading at 0.9536, with the AUD trading 0.24% higher from yesterday’s close, after minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting, highlighted policymakers’ view that the Aussie was still around 10% below its peak in April and that the current market pricing implied a very low likelihood of a near-term reduction in the cash rate. However, the members suggested that the central bank should neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them.
The pair is expected to find support at 0.9479, and a fall through could take it to the next support level of 0.9421. The pair is expected to find its first resistance at 0.9567, and a rise through could take it to the next resistance level of 0.9597.
Later during the day, Australia is expected to release a report on the Westpac leading index, which could assist traders in understanding the movement in the Aussie.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
