AUD Analysis 14.11.2019

The Australian dollar fell during the Asian session to witness the lowest since October 17 against the US dollar following the developments and economic data followed by the Australian economy and on the eve of developments and data expected on Thursday by the US economy, which includes the second half of the testimony of the Federal Reserve Governor Jerome Powell before Congress as well as the speech of several members of the Federal Open Market Committee.

At 03:58 AM GMT, AUDUSD fell 0.61% to 0.6797 levels, compared to opening levels at 0.6838, after hitting a one-month low of 0.6796, while hitting a session high of 0.6841.

This was followed by the participation of the Reserve Bank of Australia Assistant Governor in charge of the financial system, Michelle Bullock, during a panel discussion at the Association of Australian Pension Funds in Melbourne. Last September.

The Australian Labor Market data was released with the Unemployment Rate reading which showed a rise to 5.3% compared to the previous reading in September and expectations of 5.2%. This came with the change in employment index showed a decline of 19.0 thousand compared to a rise of 12.5 thousand in September September, contrary to expectations for a rise of 16.2 thousand.

On the other hand, investors are looking forward to the speech of Fed Vice Governor and Federal Open Market Committee member Randall Corrales via the opening speech at the annual conference of the International Association of Insurance Supervisors in Abu Dhabi, before we see the release of the producer price index, which is a preliminary indicator of inflationary pressures. That may reflect 0.3% growth versus a 0.3% contraction in September.

The core PPI reading also shows a 0.2% growth versus a contraction of 0.3%, coinciding with the release of the jobless claims for the week ending on the 9th of this month, which may reflect an increase of 4 thousand applications to 215 thousand applications, while the reading may show Continued for the week ended on the second of this month, a decrease of 4 thousand applications to 1,685 thousand applications.

This comes before the Federal Reserve Deputy Governor and FOMC Member Richard Clarda talked about the monetary policy strategy, tools, and communication practices at the Cato Institute annual monetary conference in Washington, before we saw the speech of Chicago Fed Chairman Charles Evans and the committee member. Federalism at the annual Ventec conference hosted by the Federal Reserve Bank of Philadelphia.

Federal Reserve Governor Jerome Powell is expected to testify in the second half of his monetary policy testimony before the Senate Banking Committee on Wednesday after he made the first half of his policy testimony before the Services Committee. Finance in the House.

The President of the Federal Reserve Bank of New York and a member of the Federal Open Market Committee will also deliver the opening speech at the Economic Policy Conference in Asia, hosted by the Federal Reserve Bank of San Francisco, before witnessing the speech of St. Louis Fed Chairman and Federal Reserve Board member James Pollard. About monetary policy at the Rotary Club in Louisville

Technical Analysis

AUDUSD was able to achieve our first awaited target at 0.6825 and surpass it to open the way towards the expected second target, which drops to 0.6735, keeping the bearish scenario valid and effective during the coming period, supported by moving below SMA 50.

Keep in mind that a break of 0.6830 may push the price to test the 0.6895 pivot resistance before any fresh attempt to fall.

Expected trading range for today is between 0.6735 support and 0.6840 resistance

Expected trend for today: Bearish