AUD Analysis 07.10.2019

The Australian dollar fluctuated in a narrow range, tilted lower during the Asian session to witness the rebound to the second session of the lowest since early October, when it tested the lowest since March 18, 2009 against the US dollar amid the lack of economic data earlier this week before The Australian economy and its counterpart the US economy, the largest in the world and amid looking forward to the forthcoming speech on Monday by the Federal Reserve Governor Jerome Powell.

At 02:59 AM GMT, the AUDUSD fell 0.18% to 0.6751 levels, compared to the opening levels of 0.6763, after the pair reached its lowest level during the session at 0.6747, while achieving the highest at 0.6766, knowing The pair started the session on a bearish price gap after last week's trading at 0.6771 levels.

Investors are looking forward to brief remarks by Fed Governor Jerome Powell at a movie premiere in Salt Lake City, ahead of Tuesday's speech, "A Look from the Federal Reserve," at the annual meeting of the National Association of Business Economics in Denver. Before taking part on Wednesday in the Federal Reserve's listening panel discussion in Kansas City.

This comes ahead of the release on Wednesday of the minutes of the Federal Open Market Committee meeting held on September 17-18, which was approved by the Federal Reserve to cut interest rates for the second time in a row by 25 basis points to between 1.75% and 2.00 This was in line with expectations, with the Commission's expectations for growth, inflation and unemployment in addition to the future interest rates for the next three years.

Fed Governor Powell noted at the end of last week's opening remarks at a Fed event in Washington that the US economy is good so far and that the Fed's task is to keep the economy as strong as possible. Approaching the target at two percent.

Powell also said Friday that the US economy faces long-term challenges as low interest rates make it harder to cut interest rates on federal funds in a recession, adding that the Fed is now looking at how efficient monetary policy tools are currently available. This year there are two meetings of the Federal Open Market Committee and they will discuss the state of the economy.

Technical analysis

AUD / USD stabilizes around 0.6750, noting that Stochastic is reaching the overbought areas, waiting for the price to stimulate the resumption of the bearish main trend, supported by SMA 50, waiting for heading towards 0.6595 as the next major stop, noting the importance of Consolidation below 0.6840 for the continuation of the expected decline.

Expected trading range for today is between 0.6680 support and 0.6800 resistance.

Expected trend for today: Bearish.