AUDUSD Movement
For the 24 hours to 23:00 GMT, the AUD strengthened 0.37% against the USD to close at 0.7592.
Yesterday, the World Bank forecasted that in China, Australia’s largest trading partner, economic growth will slow to 6.7% in 2016 and will further contract to 6.5% in 2017, owing to a deceleration in the nation’s real estate and manufacturing sectors. It also warned that China’s economic slowdown will hit growth in developing East Asia and the Pacific regions from this year until at least 2018.
LME Copper prices declined 0.19% or $9.0/MT to $4645.0/MT. Aluminium prices rose 0.10% or $1.5/MT to $1493.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.7615, with the AUD trading 0.3% higher from yesterday’s close.
Early this morning, data showed that Australia’s business conditions index advanced to an eight-year high level of 12.0 in March, from a reading of 8.0 in the previous month, indicating that a broad based economic recovery may be underway. Moreover, the nation’s business confidence index rose to a level of 6.0 in March, compared to a reading of 3.0 in the previous month.
The pair is expected to find support at 0.7555, and a fall through could take it to the next support level of 0.7496. The pair is expected to find its first resistance at 0.7653, and a rise through could take it to the next resistance level of 0.7692.
Going ahead, investors will look forward to Australia’s Westpac consumer confidence index data for April, scheduled for release in the early hours tomorrow.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.