AUDUSD Movement
For the 24 hours to 23:00 GMT, AUD weakened 1.64% against the USD to close at 1.0337, following news that economic growth in China, Australia’s largest trading partner, was much slower than expected in the first quarter of this year.
LME Copper prices declined 5.2% or $389.5/MT to $7120.5/MT. Aluminium prices declined 2.0% or $37.0/MT to $1804.0/MT.
In the Asian session, at GMT0300, the pair is trading at 1.0361, with the AUD trading 0.23% higher from yesterday’s close.
According to the minutes of the Reserve Bank of Australia’s (RBA) latest monetary policy meeting released this morning, policy members believe that lower interest rates have begun spurring weaker parts of the economy but would take some time for full effects to trickle through the economy. The minutes reiterated that present inflation outlook has provided the central bank enough room to go for further rate cuts, if required. Additionally, the minutes indicated that high exchange rate, waning growth in mining investment and fiscal consolidation are likely to continue as a drag on the economy.
The pair is expected to find support at 1.0284, and a fall through could take it to the next support level of 1.0207. The pair is expected to find its first resistance at 1.0444, and a rise through could take it to the next resistance level of 1.0527.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
