AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD strengthened 0.80% against the USD to close at 0.7669.
LME Copper prices rose 2.70% or $132.5/MT to $5045.0/MT. Aluminium prices rose 1.46% or $24.0/MT to $1673.0/MT.
In the Asian session, at GMT0300, the pair is trading at 0.7709, with the AUD trading 0.51% higher from yesterday’s close.
Early this morning, the Reserve Bank of Australia (RBA) slashed the official cash rate to a historic low level of 1.75%, in an effort to reignite inflationary pressures.
In other economic news, Australian building permits surprisingly rose by 3.7% MoM in March, rising for the second consecutive month, compared to market expectations for a fall of 2.0%. In the prior month, building approvals had climbed by a revised 2.9%.
Meanwhile, in China, Australia’s largest trading partner, the Caixin manufacturing PMI index recorded an unexpected drop to a level of 49.4 in April, compared to a level of 49.7 in the previous month. Market expectation was for the index to rise to a level of 49.8.
The pair is expected to find support at 0.7631, and a fall through could take it to the next support level of 0.7554. The pair is expected to find its first resistance at 0.7749, and a rise through could take it to the next resistance level of 0.7789.
Going ahead, investors will look forward to Australia’s AiG performance of service index for April, scheduled to release overnight.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
