AUD Analysis 24.10.2019

The Australian dollar fluctuated in a narrow uptrend range during the Asian session to witness the rebound to the tenth session in seventeen sessions 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 threshold of developments and upcoming economic data Thursday by the US economy the largest economy in the world.

At 02:19 AM GMT the AUDUSD rose 0.01% to 0.6854 levels from the opening levels of 0.6853, after the pair reached its highest level during the session at 0.6858, while the pair achieved the lowest at 0.6844.

This followed the release of the preliminary reading of Australia's Manufacturing and Services PMI for October, which showed that the manufacturing sector contracted to 50.1 vs. 50.3, which was revised from a contraction of 49.4 last September, and the service sector widened to Worth 50.8 compared to 52.4 in September.

On the other hand, investors are currently awaiting the US economy to release the Durable Goods Orders, which accounts for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect a 0.5% decline versus a 0.2% rise in August. In the past, the core reading of the index itself may show a 0.2% decline versus a 0.5% rise in August.

This comes in conjunction with the release of the index of claims for the last week on the 19th of this month, which may reflect an increase of two thousand applications to 216 thousand applications compared to 214 thousand applications in the previous weekly reading, while the reading of the claims application index may show investors for the past week on 12 of this The month decreased by 4 thousand applications to 1,675 thousand applications compared to 1,679 thousand applications.

Markets are also looking to reveal the preliminary reading of the US Manufacturing and Services PMI, amid expectations that the manufacturing sector will contract to 50.7 vs. 51.1 in September, while the preliminary reading of the Services PMI may show a widening of its value. 51.0 versus 50.9 in September.

The release of the US housing market data with the release of the new home sales index, which may reflect a decline of 0.4% to 710 thousand versus 7.1% rise at 713 thousand in August, comes before we see the US Treasury unveiled the federal budget reading which It could show a surplus of $ 83.5 billion versus a $ 200.3 billion deficit in August.

Technical Analysis

AUDUSD has been trading in a narrow range since yesterday and continues to fluctuate around 0.6840, maintaining its stability above the breached resistance of the descending channel, to keep the upside scenario valid and active for today, supported by moving above SMA 50, and the price needs to get a positive incentive to contribute Pushing trading towards our next awaited target at 0.7015, while stability above 0.6840 is an important condition for the continuation of the expected rally.

Expected trading range for today is between 0.6800 support and 0.6900 resistance.

Expected trend for today: Bullish.