AUDUSD Analysis 01.02.2019

The Australian dollar fell during the Asian session to see its rebound for the second session of its highest since December 5, while still the second consecutive weekly gain after the gains last month against the US dollar, following developments and economic data that followed the Australian economy and The economic outlook for the US economy is expected to rise on Friday.

At 02:36 GMT, the AUDUSD dropped 0.38% to 0.7245, compared to the opening levels of 0.7273, after reaching a low of 0.7239, while the highest at 0.7278.

On the Australian economy, we saw the reading of the producer price index, which is a preliminary index of inflationary pressures, which showed a slowdown in growth to 0.5% versus 0.8% in the third quarter, worse than expectations of 0.6%. Compared to 2.1% in the previous quarter's previous reading. Investors are now waiting for the CPI to be released last month.

On the other hand, markets are looking for the US economy to reveal labor market data for the last month which could reflect the stability of unemployment rates at 3.9% for the second month in a row after rising in December for the first time in four months from its lowest in nearly five decades , Amid expectations that the reading of average hourly earnings would slow growth to 0.3% from 0.4% in December.

The markets are also looking at the Non-Farm Payrolls, which may reflect a slower pace of job creation to 165,000 jobs versus 312,000 jobs added in December, before we see the final reading of the PMI by Market on the US last month, which may reflect the stability of the widening at a value of 54.9 versus 53.8 in December.

And the index of the Industrial Supply Institute index, which may show the stability of the widening at 54.1, unchanged from December, while the reading of the same indicator, measured in prices may narrow the breadth to 54.4 compared to 54.9, in conjunction with the final reading of the index Wholesale stocks, which may reflect slower growth to 0.5% versus 0.8% in November.

In addition to a reading of the Construction Spending Index, which could rise 0.2% from 0.1% in November and the final reading of the University of Michigan Consumer Confidence Index, which may reflect a widening to 90.8 from January's reading, January at 90.7 versus 98.3 in December, as well as consumer expectations of inflationary pressures for a year and five years.

This came hours after the FOMC meeting on 29-30 January ended last Wednesday, during which the Committee kept interest rates on federal funds at between 2.25% and 2.50% as it proceeded to reduce bond repurchases By $ 50 billion a month, before Federal Reserve Governor Jerome Powell said the Fed would be patient about raising interest rates.

Technical Analysis

The AUDUSD is retesting the 0.7235 level and maintaining its stability so far, in conjunction with stochastic reaching oversold areas, awaiting a bounce back to resume the expected bullish intraday direction targeting 0.7335 as a next stop.

SMA 50 supports the expected rally, which requires stability to remain above 0.7235.

The trading range for today is expected among the support at 0.7200 and the resistance at 0.7335

The general trend for today is bullish