AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD rose 0.39% against the USD and closed at 0.7150.
LME Copper prices rose 0.51% or $24.0/MT to $4705.0/MT. Aluminium prices rose 2.08% or $33.0/MT to $1621.5/MT.
In economic news, Australia’s AiG performance of manufacturing index advanced to a level of 53.5 in February, compared to a reading of 51.5 in the previous month.
In the Asian session, at GMT0400, the pair is trading at 0.7137, with the AUD trading 0.18% lower from yesterday’s close.
Earlier today, the Reserve Bank of Australia (RBA) kept official interest rate unchanged at 2.0%. In a statement issued after the meeting, the central bank governor, Glenn Stevens, reiterated that low inflation would provide scope to ease the monetary policy further, if it is found necessary in order to lend support to demand. Further, he added that the central bank will keep a watch on the nation’s labour market and the volatility in global financial markets.
In other economic news, Australia’s building permits dropped more-than-expected by 7.5% MoM in January, compared to market expectations for a fall of 3.0% and after registering a revised rise of 8.6% in the previous month.
Elsewhere in China, Australia’s largest trading partner, the NBS manufacturing PMI unexpectedly fell to a four-year low level of 49.0 in February, while markets expected it to remain steady at 49.4. Additionally, the nation’s Caixin manufacturing PMI index surprisingly declined to a level of 48.0 in February, compared to a level of 48.4 in the previous month. Market participants had anticipated it to remain steady at 48.4. Further, the non-manufacturing PMI eased to a level of 52.7 in February, from a reading of 53.5 in the previous month.
The pair is expected to find support at 0.7108, and a fall through could take it to the next support level of 0.7078. The pair is expected to find its first resistance at 0.7168, and a rise through could take it to the next resistance level of 0.7198.
Moving ahead, Australia’s Q4 GDP data, slated to release in the early hours tomorrow, will be on investor’s radar.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
