AUD/USD: Aussie Plunges On RBA Report, Broker Views

AUD/USD: Aussie Plunges On RBA Report, Broker Views

For the 24 hours to 23:00 GMT, AUD rose marginally against the USD to close at 1.0479. The Reserve Bank of Australia (RBA), in its monthly bulletin, forecasted weak growth for the nation in 2013, citing continuing weakness in the mining sector, high labor costs and the strong Australian Dollar. Additionally, the government announced that it was revising its earlier forecast of a budget surplus for the fiscal year ending in June, 2013.

LME Copper prices declined 1.5% or $120.0/MT to $7825.3/MT. Aluminium prices declined 2.0% or $40.8/MT to $2031.8/MT.

In the Asian session, at GMT0400, the pair is trading at 1.0450, with the AUD trading 0.28% lower from yesterday’s close. Adding to the Aussie Dollar’s woes today morning were comments from a leading broker that other sectors of the Australian economy, such as housing and retail, are not recovering quickly enough to make up for the rapidly declining mining sector.

The pair is expected to find support at 1.0426, and a fall through could take it to the next support level of 1.0401. The pair is expected to find its first resistance at 1.0487, and a rise through could take it to the next resistance level of 1.0524.