AUDUSD Analysis 07.03.2019

The Australian dollar fluctuated in a narrowly bullish range during the Asian session to see its rebound from its lowest level since January 4 against the US dollar, ending its longest daily losing streak since August 2017, following developments and economic data. Followed by the Australian economy and on the eve of economic data expected Thursday by the US economy, the largest economy in the world.

At 02:47 am GMT, the AUDUSD rose 0.18% to 0.7045 compared with the opening levels at 0.7032, after reaching a high of 0.7046, while a two-month low of 0.7021.

We followed the Australian economy by reading the Australian Industrial Group's (AIG) construction index, which showed contraction shrinking to 43.8 from 43.1 in January, before we saw the reading of the trade balance, which showed a surplus to 4.55 billion Against A $ 3.77 billion in December, beyond expectations of 2.85 billion Australian dollars.

This came in line with the release of the Retail Sales Index, which showed a rise of 0.1% from 0.4% in December, below expectations of a 0.3% rise. This came hours after Australian growth data for the fourth quarter showed slower growth than expectations The decision by the Bank of Australia's monetary policy makers to set interest rates at 1.50% earlier this week.

On the other hand, the markets are currently waiting for the US economy to release the final reading of the productivity index and the cost of one work, which may show productivity growth slowing to 1.5% compared to the preliminary reading for the fourth quarter and the previous quarter's reading at 0.9%, and accelerated cost growth to 0.9% In the initial reading and the previous reading of the third quarter at 0.9%.

This comes in conjunction with the reading of the index of claims for the week ending on March 2, which may reflect stability of 225 thousand requests, unchanged from the previous weekly reading, before we see the talk of a member of the Federal Open Market Committee and Deputy Governor of the Federal Reserve, About economic outlook and monetary policy at Princeton University, New Jersey.

Technical Analysis

The pair failed to breach the support level of 0.7027 to bounce back higher. But the downside is likely. With pressure from moving averages 20-50.

Stochastic is in the ascending path to reach the overbought area and wait for the cross between the indicator lines and exit from this area again to return to the downside.

The range between 0.7027 support and 0.7065 resistance