AUD Analysis 07.11.2019

The Aussie fluctuated in a narrow, bearish range during the Asian session to see its rebound for the third session from its highest since late October, when it tested the highest since July 26 against the US dollar following the developments and economic data that followed from the Australian economy and on the threshold Economic developments and data expected Thursday by the US economy, the largest economy in the world.

At 02:33 am GMT, AUDUSD fell 0.20% to 0.6870 levels, compared with opening levels at 0.6884, after the pair reached its lowest level during the session at 0.6866, while achieving the highest at 0.6885.

The Australian economy followed the release of the AIG Construction Index which showed contraction shrank to 43.9 from 42.6 in September, before the release of the Trade Balance which showed a surplus widening to $ 7.18 billion. Aussie versus A $ 6.62 billion in August, contrary to expectations that the surplus would shrink to A $ 5.10 million.

On the other hand, investors are currently awaiting the US economy to reveal the reading of the claims applications for the past week, which may reflect a decline of 3 thousand applications to 215 thousand applications, as may read the index of claims applications shows a decline of 30 thousand applications to 1,660 thousand Requested, before we see the release of a consumer credit reading which may show slower growth to $ 15.6 billion versus $ 17.9 billion in August.

Technical Analysis

AUDUSD has achieved a clear break of 0.6895 and stabilized below it, pressuring the support of the bullish intraday channel shown in the picture, which stops the positive scenario proposed in our recent reports and pressures the price to turn lower, on its way to achieve negative targets starting at 0.6825 and extending to 0.6755 .

Therefore, the bearish bias is likely for today unless 0.6895 is breached and stability above it again.

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

Expected trend for today: Bearish