AUD Analysis 16.10.2019

The Australian dollar fluctuated in a narrow uptrend range during the Asian session to witness the rebound for the seventh session in eleven sessions from the lowest since March 18, 2009 against the US dollar after the release of the minutes of the Bank of Australia meeting on Tuesday and on the eve of developments and economic data The US economy, the largest in the world, is scheduled to be released on Wednesday.

At 02:24 AM GMT, the AUDUSD fell 0.15% to 0.6740 levels, compared to the opening levels of 0.6750, after the pair reached its highest level during the session at 0.6754, while the lowest level at 0.6725.

Investors in the US economy are awaiting the release of retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect a slowing pace of growth to 0.3% from 0.4% last August. The core of the index itself grew 0.2% against steady at zero levels in August.

This comes before we see the FOMC and Chicago Fed Governor Charles Evans talk about the current economic conditions and monetary policy at the Greater Peoria Development Board in Illinois, and before the release of the US housing market data with the housing index read by the National Association of Builders. Houses which may reflect stability at 68 during October.

Markets are also looking to the Wholesale Inventories figure, which may show a slowdown in growth to 0.3% from 0.4% in July, before we see the release of the Beige Book report, which is important two weeks before the FOMC meeting. One of the cornerstones on which the Fed's monetary policy makers build their decisions is to support and stimulate the US economy.

The upcoming FOMC meeting is scheduled to be held in Washington on October 29-30. Investors are also looking ahead to FOMC and Fed Governor Lyle Brainard's speech later today. Digital currency and policy implications at the event hosted by the Peterson Institute for International Economics in Washington.

Technical Analysis

AUDUSD is resuming its negative trading significantly to approach the first target at 0.6700, reinforcing expectations for the continuation of the bearish trend over the intraday and short term, which is regulated within the main descending channel, noting that exceeding the mentioned level will extend the bearish wave to reach 0.6595, while The expected decline will remain intact unless 0.6820 is breached and stabilized above it.

Expected trading range for today is between 0.6670 support and 0.6770 resistance.

Expected trend for today: Bearish.