For the 24 hours to 23:00 GMT, AUD strengthened 1.41% against the USD to close at 0.9104 as investors speculated that the Reserve Bank of Australia (RBA) was running out of options to curb the currency’s recent strength after the RBA Governor, Glenn Stevens, stated that he saw no reason to slash interest rates further.
LME Copper prices declined 0.7% or $48.0/MT to $7054.5/MT. Aluminium prices fell 0.5% or $9.5/MT to $1732.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.9084, with the AUD trading 0.22% lower from yesterday’s close. Governor, Glenn Stevens, stated that the monetary policies in the nation was appropriately configured and that a stability in interest rate could help recovery in the nation. Additionally, the Governor projected a further deterioration in the nation’s unemployment level this year while re-affirming economic growth to soon pick-up and surpass 3% this year.
On the macro economic front, the AiG reported that the performance of its construction index in Australia fell to a reading of 44.2 in February, from previous month’s level of 48.2.
The pair is expected to find support at 0.9022, and a fall through could take it to the next support level of 0.8959. The pair is expected to find its first resistance at 0.9131, and a rise through could take it to the next resistance level of 0.9177.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.