AUD Analysis 11.11.2019

The Australian dollar fluctuated in a narrow range, tilted lower during the Asian session to witness the rebound for the third session in five sessions from its highest since late October, when it tested the highest since July 26 against the US dollar amid the lack of economic data earlier this week By the Australian economy and with the US market absent on Monday due to the Veterans Day holiday in the USA.

At 04:51 AM GMT, the Australian dollar against the US dollar fell by 0.22% to 0.6852 levels, compared to the opening levels at 0.6867, after the pair achieved the lowest during the trading session at 0.6848, while achieving the highest at 0.6870, knowing The pair started this week on a bullish price gap, after closing last week at 0.6863 levels.

The Chinese economy, Asia's largest and Australia's largest trading partner, followed the release of October inflation data which showed that CPI growth accelerated more than expected in conjunction with the widening contraction of PPI, a preliminary indicator of inflationary pressures, which may reflect On the decisions and orientations of the monetary policy makers of the People's Bank of China (China's central bank).

On Wednesday, markets are looking to reveal the wage price index, which reflects a slowdown in growth to 0.5% vs. 0.6% in the previous quarter. The annual reading of the index itself may also show a slowdown in growth to 2.2% vs. 2.3%. To see the release of Australian labor market data next Thursday with the release of the unemployment rate and the change in employment for the past month.

On the other hand, investors are awaiting the outcome of the FOMC member and Chairman of the Federal Reserve Bank of Boston, Eric Rosengren at the Norwegian Central Bank in Oslo, hours before the start of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before the US Congress in Washington.

Markets are looking ahead Wednesday to the first half of the Fed's semi-annual policy testimony before the House Financial Services Committee, before Powell will deliver the second half of his testimony before the Senate Banking Committee next Thursday. Federal funds rate of 25 basis points for the third consecutive meeting at its last meeting.

At a press conference late last month following the October 29-30 FOMC meeting in Washington, Powell noted that the Federal Reserve would temporarily stop adjusting monetary policy until the end of the year. Unless expectations change substantially in the coming period.

Technical Analysis

AUDUSD was able to confirm the breach of the bullish intraday channel support, reinforcing the continuation of the bearish trend scenario over the short and short term, awaiting to visit 0.6825 then 0.6755 as the next major targets.

Moving above SMA 50 will make it easier for the price to continue falling, while stability below 0.6895 is an important condition for achieving the suggested targets.

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

Expected trend for today: Bearish