AUDUSD Analysis 07.12.2018

The Australian dollar fell during the Asian session to see its fifth consecutive session retreat since August 9 against the US dollar following developments and economic data that followed the Australian economy and the talk of Federal Open Market Committee member and New York Bank Chairman John Williams in New York in addition to To Federal Reserve Governor Jerome Powell in Washington on the eve of economic developments and data expected Friday by the US economy, the largest economy in the world.

At 02:51 GMT, the AUDUSD fell 0.15% to 0.7225, compared with the opening levels of 0.7236, after reaching a low of 0.7219, while recording a high of 0.7237.

We followed the Australian economy by reading the Australian Manufacturing Group (AIG) Construction Index, which showed a contraction of 44.5 versus 46.4 in October, hours after the Reserve Bank of Australia's Reserve Bank of Australia Governor Ge Debili said Thursday. Sydney the interest rate level may be further reduced depending on the data.

Debeili also noted that it is unlikely to raise interest rates in the coming period and that floating the exchange rate is still important to control any shocks in the markets, adding that the economy is growing at a reasonable pace and that banks responded to the decline in house prices, which increases the economic challenges, Rose, while it is not yet clear how high they are, and that the Australian Central Bank is closely monitoring the economic data and will adjust its expectations if necessary.

On the other hand, we followed Federal Reserve Chairman and Federal Reserve Bank of New York Chairman John Williams in an interview with Mervyn King as part of the London Foundation for Economics meeting in New York before we saw Federal Reserve Governor Jerome Powell talking about the economy, rural America and the economy. Annual event of the Housing Assistance Council in Washington.

Otherwise, the markets are currently looking for the US economy to release labor market data for November that could reflect a stable unemployment rate of 3.7% for the third straight month at its lowest in almost five decades, amid expectations that the reading of average income in The hour accelerated its growth to 0.3% from 0.2% in October.

In conjunction with the release of the Non-Farm Payrolls Change Index, which may reflect a slower pace of job creation to 198,000 added jobs versus 250,000 jobs in October before the final reading of the Wholesale Inventories Index, which may reflect stability at 0.7%, unchanged from October's prior reading and 0.4% in September.

To the initial reading of the University of Michigan Consumer Sentiment Index, which may reflect a narrowing to 97.0 versus 97.5 last November, before we see the Federal Reserve Committee member for financial stability at the Peterson Institute in Washington as investors look for any hints at the future of monetary policy tightening by monetary policy makers in the Federal Reserve.

Technical analysis:

The AUDUSD remains steady without supporting the ascending channel, and we notice that Stochastic is approaching the oversold area consistently.

The pair is currently trading at the support level of 0.7235, below the averages of 20-7, but above the SMA 50 which formed yesterday's support level at 0.7186

Therefore, we believe that opportunities are available to resume the expected bearish trend over the short and short term targeting 0.7080 then 0.7020 mainly, while stability below 0.7277 is an important condition for achieving the suggested targets.

The trading range for today is among the key support at 0.7140 and resistance at 0.7277

Support and resistance:

Support: 0.7235-0.7186-0.7080-0.7020

Resistance: 0.7276-0.7377-0.7452

The general trend for today is bearish