AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD strengthened 0.22% against the USD to close at 0.8925.
LME Copper prices declined 0.9% or $65.0/MT to $7032.5/MT. Aluminium prices fell 2.9% or $49.5/MT to $1674.5 /MT.
In the Asian session, at GMT0400, the pair is trading at 0.8930, with the AUD trading 0.06% higher from yesterday’s close, after the Reserve Bank of Australia (RBA) kept its interest rate unchanged at 2.5%. However, the gains were capped after the RBA Governor, Glenn Stevens stated that the Aussie “remains high by historical standards,” adding that it should keep declining in order to achieve balanced growth in the economy. Furthermore, he reiterated his earlier stance for the nation to witness a period of stability in interest rates.
In economic news, building permits in the Australian economy surged 34.6% (YoY) in January, more than market expectations for a 24.0% rise and compared to a revised 22.5% increase recorded in the preceding month. Separately, Australia’s current account deficit narrowed to A$10.1 billion in the fourth quarter, from a revised deficit of A$12.5 billion registered in the preceding quarter.
The pair is expected to find support at 0.8898, and a fall through could take it to the next support level of 0.8866. The pair is expected to find its first resistance at 0.8966, and a rise through could take it to the next resistance level of 0.9002.
Market participants keenly await a report from the AiG on the performance of service index in Australia.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
