AUDUSD Movement
On Friday, the AUD strengthened marginally against the USD to close at 0.9269, in a holiday-thin trading session.
Late Sunday, the IMF, in its latest regional survey, indicated that the Australian economy would have to make efforts to register growth at a faster pace, in order to relieve pressure on the unemployment rate, which is close to a decade high of just below 6%. Furthermore, the institution slashed the nation’s forecast to 2.6% in 2014 and 2.7% in 2015, from its earlier expectation of 2.8% and 2.9%, respectively.
Meanwhile, the IMF expressed concerns on China’s financial sector and projected the nation’s GDP to grow 7.5% in 2014 and 7.3% in 2015, down from 7.7% growth registered last year.
Separately, the Commonwealth Bank of Australia, in its survey reported that the businesses in Australia are less confident about the future than they were at the end of last year, mainly due to concerns relating to higher interest rates and a high Australian dollar.
LME Copper prices rose 0.8% or $54.5/MT to $6785.5/MT. Aluminium prices declined 0.9% or $17.0/MT to $1823.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.9285, with the AUD trading 0.17% higher from Friday’s close.
The pair is expected to find support at 0.9263, and a fall through could take it to the next support level of 0.9242. The pair is expected to find its first resistance at 0.9303, and a rise through could take it to the next resistance level of 0.9322.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
