AUD Analusis 18.11.2019

The Australian dollar fluctuated in a narrow, bullish range during the Asian session to witness the rebound of the third session of the lowest since October 17 last against the US dollar on the eve of developments and economic data expected on Monday by the Australian economy and its counterpart the largest economy in the world.

At 02:53 AM GMT, the Australian dollar against the US dollar rose 0.10% to 0.6816 levels, compared to the opening levels at 0.6809, after the pair achieved the highest during the session at 0.6821, while the lowest level at 0.6804, knowing The pair started the session on a bullish price gap when it ended last week's trading at 0.6817.

Investors are currently awaiting the release of the October Leading Indicators before we see the Reserve Bank of Australia's assistant governor on financial markets, Christopher Kent, taking part in a panel discussion entitled "Regulatory Update on Valuation" at the Australian Securitization Forum in Sydney. Hours before the Reserve Bank of Australia's minutes were released on Tuesday.

On the other hand, markets are looking to reveal the US housing market data with the release of the housing index by the National Association of Home Builders which may reflect stability at 71 in November, and that comes before we see tomorrow the release of both the beginning of the housing starts and a statement Construction amid expectations that building permits will shrink to 0.8% for 1,381,000 permits versus 2.7% at 1,387,000 in September, while the start-up may reflect a 4.9% rise to 1,318,000 versus a 9.4% decline at 1,256,000.

This comes hours after the expiry of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before Congress last Thursday, which noted that the economy of his country is good and that growth is moderate and the labor market is strong and that he does not expect any economic disaster any time soon, with the exclusion of any adjustment In monetary policy whether to cut or raise interest rates on federal funds during the remainder of this year, adding that the monetary policy makers at the Federal Reserve are currently assessing decisions to cut interest rates three times recently and its impact on the economy.

Technical Analysis

AUDUSD is trading below SMA 50, with negative pressure remaining intact for the upcoming period, awaiting a move towards 0.6725 then 0.6670 which represents our main negative targets.

Conversely, a breach of 0.6840 could push the price to initiate recovery attempts targeting 0.6925 areas and may extend to 0.7015 before any fresh attempt to fall.

Expected trading range for today is between 0.6750 support and 0.6840 resistance.

Expected trend for today: Bearish.