AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD strengthened 0.49% against the USD to close at 0.7228.
Early this morning, the RBA kept interest rates unchanged at a record low of 2.0%, meeting investor expectations. Further, the central bank stated that the Australian economy continues to expand at a moderate pace, as the labour market remains resilient, despite a sharp fall in commodity prices and a plunge in mining investment.
LME Copper prices declined 0.87% or $40.5/MT to $4595.5/MT. Aluminium prices declined 2.53% or $37.5/MT to $1442.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7262, with the AUD trading 0.47% higher from yesterday’s close.
On the economic front, Australia’s AIG performance of manufacturing index climbed to a level of 52.5 in November, after recording a reading of 50.2 in the previous month. Moreover, the nation’s building permits unexpectedly rose 3.9% MoM in October, defying market expectations for a drop of 2.5%, and after increasing by a revised 2.3% in the previous month.
Elsewhere in China, Australia’s largest trading partner, the NBS manufacturing PMI registered an unexpected drop to 49.6 in November, slipping to its lowest level since August 2012 and compared to investor expectations of it to remain steady at 49.8. In contrast, the nation’s non-manufacturing PMI advanced to a level of 53.6 during the same month, after registering a level of 53.1 in the previous month. Additionally, China’s Caixin manufacturing PMI index surprisingly advanced to a level of 48.6 in November, beating market expectations for it to remain steady at 48.3.
The pair is expected to find support at 0.7202, and a fall through could take it to the next support level of 0.7143. The pair is expected to find its first resistance at 0.7303, and a rise through could take it to the next resistance level of 0.7344.
Going ahead, investors will keep an eye on the RBA Governor, Glenn Stevens speech, scheduled overnight.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
