AUD Analysis 01.11.2019

The Australian dollar fluctuated in a narrow uptrend range during the Asian session to witness the rebound of the 14th session in 23 sessions from the lowest since March 18, 2009 against the US dollar following the developments and economic data that followed the Australian economy and on the eve of developments and economic data Expected on Friday by the US economy the largest economy in the world.

At 03:07 AM GMT, the AUDUSD rose 0.20% to 0.6908 levels from the opening levels of 0.6894, after the pair reached its highest level during the session at 0.6910, while the pair achieved the lowest at 0.6884.

The Australian Manufacturing Index was released by the Australian Industrial Group (AIG), which showed the contraction widened to 51.6 from 54.7 in September, before inflation data was released with the release of the PPI. This is a preliminary indication of inflationary pressures that showed growth stabilized at 0.4% in the third quarter, in line with expectations.

In the same context, the Australian economy also followed the release of the annual PPI reading for the last quarter which showed a slowdown in the pace of growth to 1.6% vs. 2.0% in the previous annual reading of the second quarter. For last October.

On the other hand, investors are awaiting the release of the labor market data from the US economy last month which may reflect the rise in the unemployment rate to 3.6% vs. 3.5% in September, while the reading of the change in jobs index for non-agricultural sectors may show a slower pace of job creation to 90k jobs versus 136k jobs. Average hourly earnings may show a 0.3% growth versus steady zero.

This comes before we see the final reading of the US Manufacturing PMI by Markit, which may reflect the stability of the expansion at 51.5, little changed from the initial reading of last month versus 51.1 in September, and before we see the largest The ISM manufacturing index is expected to show a contraction shrinking to 49.0 vs. 47.8 in September.

In the same context, markets are also looking ahead to the US economy for the ISM Manufacturing Price Index reading to 50.1 versus a contraction of 49.7 in September, coinciding with the release of the Construction Spending which reflects accelerated growth to 0.2. % Compared to 0.1% last August.

This comes before we see FOMC and Fed Governor Richard Clarda delivering a speech titled "The United States, Japan and the Global Economy at the Japan Society's Food Banquet in New York," in conjunction with another Fed Governor Randall Quarles's speech on Friedrich. Hayek and the price system at the event hosted by Yale University in Connecticut.

FOMC Chairman John Williams will co-chair a question and answer session at Rutgers University in New Jersey, following the decision of Federal Reserve policy makers at the FOMC meeting October 29-30. Cut interest rates for the third consecutive meeting by 25 basis points to between 1.50% and 1.75%.

Technical Analysis

AUDUSD holds steady above the neckline of the breached double bottom pattern, supporting the continuation of the expected bullish scenario for the upcoming period, targeting mainly 0.7015, supported by moving above SMA 50.

Therefore, we are waiting for positive trading today, provided that the price holds steady above 0.6895.

Expected trading range for today is between 0.6870 support and 0.6960 resistance.

Expected trend for today: Bullish.