AUD Analysis 17.10.2019

The Australian dollar rose during the Asian session to witness the rebound for the seventh session in twelve sessions from the lowest since March 18, 2009 against the US dollar following the developments and economic data followed by the Australian economy and on the eve of developments and economic data expected on Wednesday Economy in the world which includes the recent FOMC members.

At 02:54 AM GMT, the Australian dollar against the US dollar rose 0.41% to 0.6787 levels, compared to the opening levels at 0.6759, after the pair achieved the highest during the session at 0.6791, while the lowest level at 0.6752.

This was followed by the Reserve Bank of Australia Assistant Governor in charge of Risk Management Committee Jay Diabel at the Investment Conference of the Australian Chartered Financial Analysts in Sydney, before the release of the Australian housing market data with the release of the unemployment rate, which showed a decline to 5.2% Compared to the previous reading of August and expectations of 5.3%.

This came in conjunction with the release of the change in employment, which reflected a contraction of the rise to 14.7 thousand compared to 37.9 thousand in August, below expectations at 15.3 thousand, amid the rise in full-time employment change 26.2 thousand versus the decline of 13.2 thousand, and the decline in change in part-time employment 11.4K vs. 51.1K rise, with the Business Confidence reading showing a decline to 2 vs. 5 high in the second quarter.

On the other hand, investors are awaiting the US economy to reveal the housing market data with the release of the Housing Starts and Building Permits for September and expectations that building permits will fall 5.8% to 1.34 million versus a rise of 7.7% at 1.43. Housing starts in August may also show a decline of 3.2% to 1.32 million from a decline of 12.3% at 1.36 million.

This also comes in conjunction with the release of the index of claims for the last week on the 12th of this month, which may reflect an increase of 2,000 applications to 212 thousand applications compared to 210 thousand applications in the previous weekly reading, while the reading of the claims applications index may show investors for the week that ended on the fifth of This month, a decrease of 14 thousand applications to 1,670 thousand applications compared to 1,684 thousand applications.

Markets from the world's largest industrialized nations are also eyeing the release of the Philly Fed Manufacturing Index, which may reflect a contraction in the expansion to 7.3 from 12.0 in September, before we see the release of the industrial production index which may show a 0.1% decline versus a rise. 0.6% in August, while the Energy Exploitation Rate reading may show a slowdown in growth to 77.7% versus 77.9% in August.

FOMC Fed Governor Michelle Bowman and Chicago Fed President Charles Evans speak at the Federal Reserve Bank of Chicago listening event, before we see another Federal Reserve Chairman, the Federal Reserve Bank of New York. John Williams at the Managed Funds Expectations Conference in New York.

Technical Analysis

AUDUSD is trading today with a fresh bullish bias, on its way to test the resistance of the descending channel, and as long as the price is below 0.6820, our expectations for the bearish trend will remain valid, as a breach of this level will push the price to start a bullish correction in the intraday and short term. The first target for the suggested bearish wave is at 0.6700.

Expected trading range for today is between 0.6710 support and 0.6820 resistance.

Expected trend for today: Bearish.