HomeContributorsFundamental AnalysisAustralia's Producer Price Index Unexpectedly Fell In 2Q 2020

Australia’s Producer Price Index Unexpectedly Fell In 2Q 2020

For the 24 hours to 23:00 GMT, the AUD rose 0.14% against the USD and closed at 0.7196.

LME Copper prices declined 0.6% or $41.5/MT to $6,433.5/MT. Aluminium prices fell 0.3% or $5.5/MT to $1,681.5/MT.

In the Asian session, at GMT0300, the pair is trading at 0.72, with the AUD trading 0.06% higher against the USD from yesterday’s close.

Overnight data showed that Australia’s producer price index unexpectedly fell 1.2% on a quarterly basis in 2Q 2020, confounding market expectations for a rise of 0.3% and compared to a rise of 0.2% in the previous month. Additionally, private sector credit demand unexpectedly eased 0.2% on a monthly basis in June, compared to a drop of 0.1% in the prior month.

Elsewhere in China, Australia’s largest trading partner, the non-manufacturing PMI dropped to 54.2 in July, less than market expectations for a drop to a level of 51.2 and compared to a reading of 54.4 in the prior month. Meanwhile, the NBS manufacturing PMI unexpectedly rose to 51.1 in July, defying market forecast for a drop to a level of 50.7 and compared to a reading of 50.9 in the prior month.

The pair is expected to find support at 0.7139, and a fall through could take it to the next support level of 0.7079. The pair is expected to find its first resistance at 0.7242, and a rise through could take it to the next resistance level of 0.7285.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

GCI Financial
GCI Financialhttp://www.gcitrading.com/
DISCLAIMER : GCI's Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be used as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

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