AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD declined 0.2% against the USD and closed at 0.7914.
LME Copper prices declined 0.9% or $66.0/MT to $7093.0/MT. Aluminium prices rose 3.5% or $77.0/MT to $2266.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7908, with the AUD trading 0.08% lower against the USD from yesterday’s close.
Minutes of the Reserve Bank of Australia’s (RBA) February meeting showed that officials remained sanguine about Australia’s economic outlook, citing a nascent recovery in global economy. Further, the central bank reiterated a steady course for raising interest rates and stressed that in spite of the robust labour market, wage growth “was yet to pick up”. Moreover, officials expect inflation to increase gradually as the economy strengthens, while emphasising that household debt remained “elevated”.
The pair is expected to find support at 0.7888, and a fall through could take it to the next support level of 0.7867. The pair is expected to find its first resistance at 0.7931, and a rise through could take it to the next resistance level of 0.7953.
Moving ahead, traders would await the release of Australia’s Westpac leading index for January, scheduled to release overnight.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
