Aussie Extends Its Losses In The Asian Session
GCI Financial | Jul 28, 2014 02:41AM ET
On Friday, the AUD weakened 0.19% against the USD to close at 0.9398.
Australian Treasurer, Joe Hockey reassured New Zealand, Australia’s second biggest trading partner, that the Australian economy is in good condition and the nation is not in trouble nor is any sort of crisis brewing in the economy. Further, he added that the government’s reforms were about continuing growth and stimulating other parts of the economy as well.
LME Copper prices rose 0.5% or $32.5/MT to $ 7183.5/MT. Aluminium prices declined 0.2% or $5.0/MT to $ 2008.5 /MT.
In the Asian session, at GMT0300, the pair is trading at 0.9395, with the AUD trading slightly lower from Friday’s close, after Chinese Premier, Li Keqiang, revealed that downward pressure continues to remain on the Chinese economy, despite it performing well in the first half of 2014. Additionally, a local think tank, earlier this morning, indicated that Australia’s largest trading partner, China would find it difficult to sustain a 7.5% growth level reached in the second quarter for the rest of the year, citing deteriorating consumer spending and the downbeat real estate market.
Data released over the weekend from China indicated that industrial profits in the nation climbed 11.4% in China on a year to date basis, in June, compared to 9.8% rise recorded in the January to May period.
The pair is expected to find support at 0.9379, and a fall through could take it to the next support level of 0.9362. The pair is expected to find its first resistance at 0.9418, and a rise through could take it to the next resistance level of 0.9440.
With no economic release scheduled today, investors would pay attention to the new home sales data, to be released early tomorrow.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.