AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD traded flat against the USD and closed at 0.7679.
LME Copper prices declined 0.5% or $35.0/MT to $6777.0/MT. Aluminium prices declined 1.2% or $25.5/MT to $2078.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7688, with the AUD trading 0.12% higher against the USD from yesterday’s close.
Earlier today, the Reserve Bank of Australia (RBA), in its quarterly statement on monetary policy, slightly lowered Australia’s economic growth outlook, while signalling only a gradual rise in headline inflation. The Australian economy is now expected to post an economic growth of 2.75% in mid-2018, from an earlier projection of 3.0%, while inflation is estimated to rise to 2.0% by June 2018 and 2.25% by the end of 2019. The central bank also warned that outlook for household income growth remains a significant uncertainty in its efforts to forecast consumption growth.
The pair is expected to find support at 0.7661, and a fall through could take it to the next support level of 0.7633. The pair is expected to find its first resistance at 0.7705, and a rise through could take it to the next resistance level of 0.7721.
Next week, traders would focus on Australia’s unemployment rate, NAB business confidence and Westpac consumer confidence data.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
