AUD analysis 03.10.2019

The Australian dollar fluctuated in a narrow, bullish range during the Asian session to witness the rebound for the second consecutive session from 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 eve of developments and economic data on Thursday By the US economy the largest economy in the world which includes the speech of the members of the Federal Open Market Committee.

At 03:03 AM GMT the AUDUSD rose 0.10% to 0.6714 levels, compared to the opening levels of 0.6707, after the pair reached its highest level during the session at 0.6717, while the lowest level at 0.6704.

The Australian economy followed the release of the AIG Services Index which reflected a widening of 51.5 vs. 51.4 in August, ahead of the Trade Balance which showed a surplus narrowed to A $ 5.93 billion. Against A $ 7.25 billion in July, worse than expectations that the surplus shrank to A $ 6.00 million.

On the other hand, investors are awaiting the outcome of Chicago Fed President Charles Evans' speech on the monetary policy of the central banking chain of the Global Accreditation Center in Madrid, before we witness the speech of Fed Governor Randall Quarles. Financial Stability Board in 10 years "at the European Banking Summit in Brussels

This comes in conjunction with the release of the US claims for the past week on September 28, which may reflect an increase of 2,000 applications to 215 thousand applications compared to 213 thousand applications in the previous weekly reading, as may read the index of claims applications for investors for the past week on 21 From last month, an increase of 4 thousand applications to 1,654 thousand applications against 1,650 thousand applications.

The US Markit Services PMI final reading from the US may reflect a steady expansion at 50.9, little changed from the initial reading for September and 50.7 in August, before the ISM reading was released. Expansion may show contraction to 55.1 versus 56.4 in August.

Markets from the world's largest industrialized nations are also eyeing the factory orders figure, which could show a 0.5% decline versus a 1.4% rise in July, before we see another FOMC member and Fed Vice Governor Richard Clarda speaking. He is expected to speak about the economy and monetary policy at the event hosted by the Wall Street Journal in New York.

Technical analysis

AUDUSD found strong support at 0.6670 again, showing some temporary bullish bias, influenced by the positivity of Stochastic, but since the price is within the main descending channel, the bearish trend scenario will remain valid for the coming period, supported by SMA 50, awaiting direction Towards 0.6595 mainly.

A break of 0.6840 will stop the expected decline and lead the price to start a bullish correction in the short term.

Expected trading range for today is between 0.6660 support and 0.6750 resistance.

Expected trend for today: Bearish.