AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD rose 0.06% against the USD and closed at 0.7089.
LME Copper prices declined 2.3% or $152.0/MT to $6420.0/MT. Aluminium prices declined 1.6% or $31.0/MT to $1859.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7074, with the AUD trading 0.21% lower against the USD from yesterday’s close.
Overnight data revealed that Australia’s AIG performance of services index advanced to a level of 44.5 in February, compared to a reading of 44.3 in the previous month. Further, the nation’s seasonally adjusted current account deficit narrowed more-than-expected to A$7.20 billion in 4Q18, following a revised deficit of A$10.80 billion in the prior quarter. Meanwhile, the CBA services PMI declined to a level of 48.7 in February, following a level of 49.3 in the preceding month.
The Reserve Bank of Australia, in its latest monetary policy meeting, kept its interest rate unchanged at 1.5%. In a statement following the meeting, the RBA Governor, Philip Lowe, highlighted an upbeat assessment of the Australian economy and stated that the low rate continued to support the economy. Further, he added that he expects unemployment rate to edge down and expects the economy to grow by 3.0% this year.
Elsewhere in China, Australia’s largest trading partner, the Caixin services PMI declined to a level of 51.1 in February, more than market expectations for a fall to a level of 53.5. In the prior month, the PMI had recorded a reading of 53.6.
The pair is expected to find support at 0.706, and a fall through could take it to the next support level of 0.7045. The pair is expected to find its first resistance at 0.7095, and a rise through could take it to the next resistance level of 0.7115.
Looking forward, investors would await Australia’s gross domestic product for the fourth quarter of 2018, slated to release overnight.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
