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COZfx: AUD/USD trading on a weaker footing this morning


kiriss5678

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COZforex: For the past trading session, the AUD traded marginally lower against the USD to close at 0.8766, during a broad strengthening in the greenback.

Yesterday, the RBA Governor, Glenn Stevens expressed concerns over Australia’s lending standards and urged banks to carefully monitor the process, as house prices in Australia were already over-heated.

In commodities, LME Copper prices rise 1.06% or $70.5/MT to $6730.5/MT. Meanwhile, Aluminium prices rise 0.41% or $8.0/MT to $1980.0/MT.

On the macro front, in China, Australia’s biggest trading partner, the manufacturing PMI unexpectedly advanced to a 3-month high reading of 50.4 in October, higher than market expectations for a level of 50.2 and compared to similar reading recorded in the previous month.

Separately, the business confidence index in Australia remained unchanged at a level of 6.0 in 3Q 2014.

In technical analysis, COZforex senior currency strategist Ian • Quigley said, AUD/USD is predicted to find support at 0.8734, and a drop through could take it to the next support line of 0.8708. Meanwhile, the pair is predicted to find its first resistance at 0.8802, and a rise through could take it to the next resistance line of 0.8844.

During no economic releases from Australia, trading trends in the pair today are expected to be determined by economic news from other countries.

(COZ forex UK)

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