AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 0.58% against the USD and closed at 0.6880.
LME Copper prices rose 0.9% or $49.5/MT to $5846.5/MT. Aluminium prices rose 1.2% or $21.0/MT to $1787.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.6902, with the AUD trading 0.32% higher against the USD from yesterday’s close.
Overnight data showed that Australia’s AIG performance of services index advanced to a level of 54.2 in October, following a reading of 51.5 in the previous month.
The Reserve Bank of Australia (RBA), at its latest monetary policy meeting decided to leave its interest rate steady at 0.75%, as widely expected and maintained its inflation target between the range of 2% to 3%. Moreover, the RBA stated that it would consider further easing of monetary policy if required to support sustainable growth, full employment and the achievement of the inflation target over time. However, the central bank slashed its economic growth forecast to 2.25% from 2.50% in 2019, but anticipated a pickup to 3% by 2021.
Elsewhere in China, Australia’s largest trading partner, the Caixin/Markit services PMI unexpectedly fell to a level of 51.1 in October, defying market consensus for an advance to 52.8. The PMI had recorded a reading of 51.3 in the prior month.
The pair is expected to find support at 0.6878, and a fall through could take it to the next support level of 0.6853. The pair is expected to find its first resistance at 0.6926, and a rise through could take it to the next resistance level of 0.6949.
Amid lack of economic releases in Australia today, traders would focus on global macroeconomic events for further direction.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
