AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 0.27% against the USD and closed at 0.6713.
LME Copper prices declined 1.2% or $67.5/MT to $5610.5/MT. Aluminium prices remained unchanged at $1712.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.6694, with the AUD trading 0.28% lower against the USD from yesterday’s close.
Overnight data showed that Australia’s seasonally adjusted retail sales unexpectedly eased 0.1% on a monthly basis in July, defying market expectations for an advance of 0.2%. In the prior month, retail sales had registered a rise of 0.4%. Meanwhile, seasonally adjusted current account surplus stood at A$5.9 billion in 2Q19, compared to a revised deficit of A$1.10 billion in the previous quarter.
The Reserve Bank of Australia (RBA), in its September monetary policy meeting, decided to hold its interest rate at its current record low level of 1.0%, as widely expected. However, the central bank warned that weakening global economic growth and escalating trade tensions might bring further rate cuts.
The pair is expected to find support at 0.6678, and a fall through could take it to the next support level of 0.6663. The pair is expected to find its first resistance at 0.6721, and a rise through could take it to the next resistance level of 0.6749.
Moving forward, investors would await Australia’s AiG performance of service index and the CBA services PMI for August followed by gross domestic product for the 2Q 2019, set to release overnight.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
