AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD weakened 0.07% against the USD to close at 0.9117.
LME Copper prices declined 0.3% or $18.5/MT to $7008.5/MT. Aluminium prices declined 0.7% or $11.5/MT to $1699.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.9064, with the AUD trading 0.58% lower from yesterday’s close, after the Reserve Bank of Australia (RBA) decided to leave its official interest rate unchanged at the historic low of 2.5%, in line with economists’ forecasts. Meanwhile, the RBA Governor, Glenn Stevens reiterated his earlier stance that the central bank is still looking for more balanced growth in the economy, before making any changes in the interest rate. He further added that despite an improvement in indicators of household and business sentiment in the recent past, it is not yet clear whether this growth is sustainable.
The Australian Dollar was further pressurised after the China’s official purchasing managers’ index (PMI) for the non-manufacturing sector eased slightly to 56.0 in November from 56.3 in October.
Separately, official figures indicated that the Australian retail sales rose a seasonally adjusted 0.5% in October, slightly above economists’ expectations of a 0.4% rise, however below its September’s 0.9% increase. Additionally, the current account deficit widened to $12.71 billion in the September quarter, following a revised deficit of $12.09 billion in the June quarter.
The pair is expected to find support at 0.9023, and a fall through could take it to the next support level of 0.8983. The pair is expected to find its first resistance at 0.9137, and a rise through could take it to the next resistance level of 0.9211.
Market participants are expected to wait for the release of AiG Performance of Services Index for November, due later in the day, to get further hints on the further direction of the pair.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
