Australian dollar analysis 08.10.2021

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its rebound to the sixth session in seven sessions from its lowest since August 23, explaining its stability near its highest since mid-September against the US dollar, after the Australian Central Bank revealed a review report. Financial stability and on the cusp of developments and economic data expected today, Friday, by the American economy.

At exactly 03:58 am GMT, the Australian dollar pair rose against the US dollar by 0.14% to 0.7317 levels, compared to the opening levels at 0.7307, which is the lowest level during the trading session, while the pair achieved its highest level during the trading session at 0.7324.

As we followed the Australian economy, the Reserve Bank of Australia revealed its semi-annual report to review financial stability, which stated that borrower repayment crises have usually decreased, but they still pose a threat to financial stability, and that when the economy is gradually reopened, production is expected to return, which reduces the risk to the financial system.

The Bank of Australia's October Financial Stability Review also touched upon that there was an accumulation of systemic risks associated with dormant and growing debt, and we would like to point out that the Reserve Bank of Australia emphasized in its semi-annual Financial Stability Report that the cyber defenses of the major financial institution will be breached. Another time.

On the other hand, investors are currently awaiting the release of labor market data by the US economy, with the release of a reading of the employment change index for sectors other than agricultural, which may reflect 490 thousand jobs added compared to 235 thousand jobs added last August, and a reading of unemployment rates may appear. A decrease to 6.9% compared to 7.1%, while the average hourly earnings index may indicate a slowdown in growth to 0.4% compared to 0.6% in August.

This comes before the release of the final reading of the wholesale inventories index, which may confirm growth of 1.2%, unchanged from the initial reading for the month of August, and compared to 0.6% in July. to extend the debt ceiling to early December and that he hopes to complete it soon, after his meeting with Republican House Minority Leader Mitch McConnell.

Technical Analysis

The Australian dollar against the US dollar pair achieved a clear breach of the 0.7290 level and settled above it, heading towards achieving additional expected gains in the upcoming sessions, waiting to visit the 0.7360 level as a next station.

Therefore, the bullish bias will be likely on the intraday term, noting that breaking 0.7290 will stop the positive scenario and pressure the price to decline again.

The expected trading range for today is between the support 0.7250 and the resistance 0.7370

The forecast trend for today: bullish