Analysis of the Australian Dollar 06-05-2019

The Australian dollar fluctuated in a narrow range slipping towards the Asian session, its lowest since January 3 against the US dollar following developments and economic data that followed Monday on the Australian economy and following the threat of US President Donald Trump to return tariffs on goods and goods An incoming Chinese for his country is estimated at $ 200 billion and raising the fee from 10% to 25% by next Friday.

At 3:12 am GMT, the Australian dollar fell 0.14% to 0.6973 from the opening levels of 0.6983, after hitting a four-month low of 0.6963, while the highest at 0.6998, We would like to point out that the pair started trading this week on a bearish price gap after closing last week at 0.7018.

We have followed the Australian economy by reading the inflation gauge index by the Melbourne Institute (MI) which showed a slowdown in growth to 0.2% compared to 0.4% in March. The annual reading of the index also showed a slowdown of growth to 1.8% versus 2.1% Before we saw the reading of the employment index, which reflected the contraction of the decline to 0.1% compared to 1.7% in four months.

Elsewhere, markets are looking to unveil many important economic data for the Australian economy on Tuesday, including the decisions and directions of the Reserve Bank of Australia's monetary policy makers as the Australian central bank releases interest rates amid expectations of a 25 basis point cut to 1.25% 1.50%.

Technical Analysis

The AUDUSD is showing a slight bearish bias below the 0.7000 barrier, and therefore our bearish outlook remains valid for the coming period, noting that our first target is at 0.6905, breaking the key towards 0.6800 as the next target.

On the other hand, it should be noted that the continuation of the expected decline depends on stability below 0.7044.

The trading range for today is expected among the support at 0.6920 and the resistance at 0.7020

The general trend for today is bearish