Australian Dollar Continues To Capitalize On Latest RBA Minutes

Australian Dollar Continues To Capitalize On Latest RBA Minutes

For the 24 hours to 23:00 GMT, AUD strengthened 0.30% against the USD to close at 1.0347, following the release of more positive Reserve Bank of Australia's (RBA) minutes than had been anticipated. The minutes indicated that the bank would wait to assess the impact of recent rate cuts before deciding to cut rates again.

LME Copper prices declined 0.1% or $5.5/MT to $8070.0/MT. Aluminium prices declined 0.5% or $10.5/MT to $2075.5/MT.

In the Asian session, at GMT0400, the pair is trading at 1.0360, with the AUD trading 0.13% higher from yesterday's close.

In economic news, Australia's the Westpac-Melbourne Institute reported that its leading index in Australia advanced 0.2% (MoM) in December, compared to an upwardly revised 0.7% rise recorded in the previous month. However, the Conference Board's leading economic index in Australia dropped to a reading of 121.8 in December, compared to a reading of 121.9 reported last month. Meanwhile, the wage cost index climbed 0.8% (QoQ) in the Q4 FY2012, in line with market expectations and compared to a 0.7% rise in the Q3 FY2012.

Additionally, Moody's Investors Service indicated that the China, Australia's biggest trading partner is showing signs of recovery and a case for hard landing looks unlikely.

The pair is expected to find support at 1.0330, and a fall through could take it to the next support level of 1.0300. The pair is expected to find its first resistance at 1.0380, and a rise through could take it to the next resistance level of 1.0400.