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COZfx: Aussie extends its gains after RBA minutes


kiriss5678

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COZforex: For the past trading session, the AUD strengthened 0.17% against the USD to close at 0.9029. In the Asian session, the pair is trading at 0.9035, with the AUD trading 0.07% higher from yesterday’s close.

In commodities, LME Copper prices dropped 0.09% or $6.0/MT to $6850.0/MT. Meanwhile, Aluminium prices dropped 2.49% or $50.0/MT to $1958.5/MT.

Earlier today, the minutes of the RBA’s latest policy meeting indicated that the nation’s business conditions have improved and there are evidences that suggest that growth in non-mining business investment would pick up modestly over the coming quarters. However, the minutes offered no clues on the timing of its next interest rate move.

Separately, the RBA Assistant Governor, Christopher Kent, opined that he is optimistic that the new business investment would boost Australia’s economic growth. He further mentioned that a decline in the domestic currency would support demand for local producers that compete with imports.

Elsewhere, in China, Australia’s biggest trading partner, the actual FDI registered a drop of 14.0% on an annual basis, in August, compared to a decline of 17.0% in the prior month.

In technical analysis, COZFX strategist Nigel Boynton said, AUD/USD is predicted to find support at 0.8996, and a fall through could take it to the next support line of 0.8956. Meanwhile, the pair is predicted to find its first resistance at 0.9063, and a rise through could take it to the next resistance line of 0.9090.

(COZ forex UK)

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