AUDUSD Analysis 12.12.2018

The Australian dollar fluctuated in a narrow bullish range during the Asian session to see its rebound for the second consecutive session from its lowest since November 13 against the US dollar following developments and economic data that followed on the Australian economy and on the eve of developments and economic data expected on Tuesday from Ahead of the US economy, the world's largest economy.

At 02:58 GMT, the AUDUSD rose 0.11% to 0.7198 compared to the opening levels of 0.7190, after reaching a high of 0.7208, while reaching a low of 0.7185.

We followed the release of the Australian housing market data with the reading of the house price index, which showed a widening of the decline to 1.5% in line with expectations compared to 0.7% in the second quarter, and the annual reading of the same index showed the widening decline to 1.9% compared to 0.6% in the annual reading Prior to the second quarter, outperforming expectations at 2.0%.

This came in conjunction with the release of the National Bank of Australia's Business Confidence Index, which showed a contraction of 3 to 5 in October, hours after Assistant Secretary of the Australian Reserve Bank of Financial Markets Christopher Kent said yesterday in Sydney that The next step is likely to be to raise interest rates and there is also nothing to prevent them from being cut if necessary.

On the other hand, investors are looking for the US economy to release the Producer Price Index (PPI), which is a preliminary index of inflationary pressures, which may reflect stability at zero levels versus 0.6% growth in October, while the annual reading of the same index may show growth slowing to 2.5% Compared with 2.9% in the previous annual reading for the month of October.

In the same context, the core reading of PPI may show a slowdown of 0.1% vs. 0.5% in October, and the core annualized reading of the same index may reflect a slowdown in growth to 2.5% from 2.6% in the previous October reading , And comes hours before the disclosure on Wednesday on the reading of the consumer price index, which may confirm the slow growth of inflationary pressures during the past month.

Technical Analysis

The price is currently trading among the moving averages as SMA 50 continues to form a support level at 0.7180 while there is a SMA 7 at 0.7235

AUDUSD continues to fluctuate around the 0.7200 level, and the SMA 50 continues to press the price to prevent it from falling,

Stochastic within the oversold area in a sideways path increases the negative pressure on the price.

Our bearish trend is targeting 0.7080 and then 0.7020 as the next major stops, noting that the continuation of the expected decline requires stability below 0.7277.

The trading range for today is among the key support at 0.7120 and resistance at 0.7277

Support and resistance:

Support: 0.7180-0.7142-0.7120-0.7044

Resistance: 0.7235-0.7276-0.7367

The general trend for today is bearish