AUD Analysis 31.10.2019

Australian dollar rises during the Asian session to see the rebound to the 14th session in the twenty-two sessions of the lowest since March 18, 2009 against the US dollar 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 American economy the largest economy in the world.

At 02:54 AM GMT, the Australian dollar against the US dollar rose 0.30% to 0.6924 levels compared to the opening levels at 0.6903, after the pair reached its highest level since July 26 last at 0.6849, while the pair achieved the lowest During the trading session at 0.6849.

The Australian economy followed the release of the housing market data with the release of the Building Permits which showed a rise of 7.6% versus a decline of 0.6% last August, beating expectations for a 0.1% rise, while the annual reading of the same index showed a decline in the decline. To 19.0% versus 21.5% in the prior yearly reading for August, contrary to expectations that the decline would widen to 25.7%.

This came before we saw the release of the import price index, which showed a slowdown of growth to 0.4% compared to 0.9% in the second quarter, worse than that indicated a slowdown of growth to 0.5%, while the reading of the export price index reflected a slowdown of growth to 1.3% against 3.8% in the quarter Second, beating expectations for a 0.5% decline, coinciding with the private sector credit reading showed growth steady at 0.2% in September, below expectations for 0.3%.

On the other hand, investors are currently awaiting the US economy to reveal personal spending and income data which may reflect an acceleration in personal spending growth to 0.3% vs. 0.1% in August, and slowing personal income growth to 0.3% vs. 0.4% in August, Core CPI reading may show a steady pace of growth in September at 0.1%.

This comes in conjunction with the release of the labor unit cost index, which may reflect the acceleration of growth to 0.7% compared to 0.6% in the second quarter, and the issuance of claims for the benefit last week on the 26th of this month, which may reflect an increase of 3 thousand applications to 215 thousand requests, Manufacturing data is released with the Chicago PMI reading which may reflect a contraction in contraction to 48.4 from 47.1 in September.

On the other hand, on Thursday we followed the end of the October 29-30 Federal Open Market Committee meeting in Washington, during which the Fed's monetary policy makers decided to cut the federal funds rate for the third consecutive meeting by 25 basis points to between 1.50% and 1.75%, which was in line with expectations.

Federal Reserve Governor Jerome Powell noted at a press conference yesterday that the Federal Reserve will temporarily stop adjusting monetary policy until the end of the year unless expectations change substantially in the coming period. The Fed will require a large and sustained movement in inflation to consider resumed rate hikes.

Technical Analysis

AUDUSD has successfully breached the neckline of the double bottom pattern shown above, providing a good positive impetus to support the bullish outlook over the coming sessions, paving the way towards 0.7015 which is our next major target.

Therefore, the bullish bias remains likely for today, taking into consideration that a break of 0.6895 may force the price to provide negative trades to initially test 0.6810 areas before any new attempt to rise.

Expected trading range for today is between 0.6895 support and 0.6980 resistance.

Expected trend for today: Bullish.