AUDUSD Movement

For the 24 hours to 23:00 GMT, AUD weakened 0.50% against the USD to close at 1.0265.

In the Asian session, at GMT0300, the pair is trading at 1.0269, with the AUD trading marginally higher from yesterday’s close, after data released this morning indicated that the HSBC services purchasing managers’ index (PMI) in China, rose to 54.1 in April, compared to 53.3 in previous month.

Data just released indicated that the Reserve Bank of Australia lowered the inflation and growth outlook for the economy amid softness in labor market, moderate wage growth and a weak property market. In its quarterly statement on Monetary Policy, the central bank lowered the forecast for nation’s gross domestic product to 2.75% in the year ending June 2012 from the February forecast of 3.50%. For the year ending December 2012, growth is projected at 3.0%, lower than previous projection of 3-3.5%.

LME Copper prices declined 1.0% or $83.5/MT to $8,317.0/ MT. Aluminium prices declined 0.8% or $17.0/MT to $2,047.3/ MT.

The pair is expected to find support at 1.0236, and a fall through could take it to the next support level of 1.0202. The pair is expected to find its first resistance at 1.0307, and a rise through could take it to the next resistance level of 1.0344.

The currency pair is showing convergence with its 20 Hr and is trading below its 50 Hr moving average.