For the 24 hours to 23:00 GMT, the AUD rose 0.12% against the USD and closed at 0.7793.
LME Copper prices rose 1.7% or $118.5/MT to $6968.5/MT. Aluminium prices rose 0.1% or $1.0/MT to $2136.0/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7804, with the AUD trading 0.14% higher against the USD from yesterday’s close.
Macroeconomic data revealed that Australia’s seasonally adjusted gross domestic product (GDP) climbed less-than-anticipated by 0.4% on a quarterly basis in the three months to December 2017, amid a sharp fall in exports. Market participants had envisaged the nation’s GDP to advance 0.5%, after recording a growth of 0.6% in the previous quarter.
Separately, the Reserve Bank of Australia’s (RBA) Governor, Philip Lowe, expressed confidence that inflation in Australia would rise in the coming years, albeit gradually. Further, Lowe described the US President, Donald Trump’s tariff plan as ‘highly regrettable’ and warned that global economy could be dealt with a ‘very big shock’ if it sparks retaliation.
The pair is expected to find support at 0.776, and a fall through could take it to the next support level of 0.7716. The pair is expected to find its first resistance at 0.7845, and a rise through could take it to the next resistance level of 0.7886.
Looking forward, Australia’s trade balance figures for January, set to release overnight, will be on investors’ radar.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
