AUD Analysis 04.09.2019

The Australian dollar rose during the Asian session to witness a rebound for the second consecutive session from the lowest since August 7, when it tested the lowest since March 18, 2009 against the US dollar following the developments and economic data that followed from the Australian economy and on the cusp Economic developments and data expected on Wednesday by the US economy, the largest economy in the world, including the speech of members of the Federal Open Market Committee.

At 02:40 AM GMT, the AUDUSD rose 0.28% to 0.6779 levels, compared with opening levels at 0.6760, after the pair reached its highest level during the session at 0.6783, while the lowest level at 0.6755.

The Australian economy followed the release of the Australian Industrial Group Services Index (AIG) which reflected a widening of 51.4 versus a contraction of 52.2 in July. The pace of growth in the second quarter is in line with expectations at 0.5%, little changed from the previous quarter's reading.

In the same context, the annualized GDP showed a slower pace of growth to 1.4%, also in line with expectations, versus 1.7% in the previous quarter's Q1 reading, hours after the RBA monetary policy makers decided to keep benchmark interest rates short. Futures are at an all-time low for the second consecutive meeting at 1.00%.

On the other hand, investors are awaiting the US economy to reveal the trade balance reading which may reflect a narrowing of the deficit to $ 54.2 billion compared to $ 55.2 billion last June. New York Fed John Williams at the Euromoney conference in New York.

Later in the day, Federal Open Market Committee (FOMC) and St. Louis Federal Reserve Chairman James Pollard will deliver the opening speech along with Fed Governor and Federal Open Market Committee member Michelle Bowman at the event hosted by the St. Louis Federal Reserve Bank in St. Louis. Louis.

This comes before we see the release of the Beige Book report, which is important in that it is issued two weeks before the meeting of the Federal Open Market Committee, which is one of the pillars on which the monetary policy makers at the Federal Reserve Bank decisions and directions to support and stimulate the US economy, knowing that the meeting The next FOMC is scheduled to be held in Washington on September 17-18.

The Federal Open Market Committee (FOMC) and Chicago Fed Governor Charles Evans will deliver a keynote speech at a North American trade conference in Detroit, just hours before last month's labor market data and Fed Governor Jerome Powell delivered a speech titled “Economic Outlook”. And monetary policy "at an event hosted by the Swiss Institute of International Studies in Zurich.

Technical Analysis

AUDUSD has breached the 0.6740 level and settled above it, turning higher on the intraday basis, on its way to test 0.6830 levels and may extend to 0.6880 before attempting to resume the bearish main trend again.

Therefore, the bullish bias is likely for today unless 0.6740 is breached and stability below it again.

Expected trading range for today is between 0.6730 support and 0.6830 resistance.

Expected trend for today: Bullish.