AUDUSD Analysis 12.03.2019

The Australian dollar fluctuated in a tight range sloping upward during the Asian session to see its third straight session retreat since January 4 against the US dollar following a recorded conversation by Federal Reserve Governor Jerome Powell and following the economic developments and data that followed on the Australian economy On the eve of the talk of Deputy Reserve Bank of Australia Governor Jay DeBill, in addition to the economic developments and data expected on Tuesday by the US economy, the largest economy in the world.

At 02:48 GMT, the AUDUSD rose 0.01% to 0.7071 compared to the opening levels of 0.7070 after recording a high of 0.7081 and a low of 0.7058.

From the Australian economy, we followed the release of the Australian National Bank of Business Confidence Index, which showed a contraction of 2 to 4 in January, coinciding with the release of housing market data with the Home Loan Index reading showing contraction to 2.6% versus 6.0% in December, worse than the 2.0% decline.

Investors are now looking forward to what will be the outcome of a speech by Assistant Governor of the Reserve Bank of Australia in charge of Risk Management Committee Jay DeBill at the Center for Policy Development under the title "Climate Change and Economics" in Sydney.

Today, we expect the US economy to release inflation data with the release of the Consumer Price Index (CPI), which showed a 0.2% growth versus stability at zero levels in January, while the core reading for the same indicator may show a 0.2% In January, the index's annual reading may also reflect a 1.6% growth stability.

The annual Core reading of the CPI may also show a 2.2% growth rate, unchanged from the previous January reading, before we see Federal Reserve Vice President and Federal Open Market Committee member Ellen Bernhard deliver a speech under Entitled "Updating the Law on Community Reinvestment" at the Fair Economy Conference of the Coalition for Reinvestment of National Society in Washington.

Technical Analysis

The AUDUSD traded positively yesterday to close the daily candlestick above 0.7044, which stops the negative scenario suggested in our recent reports and pushes the price to achieve further gains in the coming sessions, with positive targets at 0.7125 and 0.7250.

Therefore, the bullish trend will be expected for today unless the level of 0.7044 is broken and stability below it again.

The trading range for today is expected among the support at 0.7000 and the resistance at 0.7150

The general trend for today is bullish