AUD Analysis 12.11.2019

The Australian dollar fluctuated in a narrow range that tends to decline during the Asian session to witness the lowest since October 28 against the US dollar following the developments and economic data followed by Tuesday by the Australian economy and amid the lack of economic data by the US economy earlier this week .

At 04:33 am GMT, the AUDUSD fell 0.15% to 0.6841 levels, compared to the opening levels of 0.6851, after the pair reached its lowest level during the session at 0.6832, while the highest level at 0.6854.

The Australian National Bank's Business Confidence Index for October showed a widening of 2 vs. steady at zero levels in September, while the reading of the same index of confidence in the current situation showed an expansion to Worth 3 for 2 in September.

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%. The Australian labor market data will be released tomorrow with the release of last month's Unemployment Rate and Employment Change.

On the other hand, investors are currently awaiting the outcome of the US President's speech at the Economic Club in New York, before witnessing the speech of the Deputy Governor of the Federal Reserve and Federal Open Market Committee Member Richard Clarda speech entitled "Monetary Policy, Price Stability and Bond Returns" at a conference sponsored by The Bank for International Settlements and the Federal Reserve as well as the Swiss National Bank in Switzerland.

This comes just hours before the start of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before the US Congress in Washington, where he is expected to give tomorrow the first half of his semi-annual testimony on policy before the Financial Services Committee in the House of Representatives, before Powell will deliver after Tomorrow, the second half of his testimony before the Senate Banking Committee.

Technical Analysis

AUDUSD is testing the 50 MA now, waiting to cross this level to facilitate the price mission by achieving our negative targets starting at 0.6825 and extending to 0.6755.

In general, we will continue to favor the bearishness for the coming period unless breaching 0.6895 and holding above it.

Expected trading range for today is between 0.6780 support and 0.6880 resistance

Expected trend for today: Bearish