AUD Analysis 22.11.2019

The Australian dollar fluctuated in a narrow uptrend range during the Asian session, while still making its third weekly loss against the US dollar following the developments and economic data that followed from the Australian economy and on the eve of developments and economic data expected on Friday by the US economy, the world's largest economy .

At 02:56 AM GMT, the Australian dollar against the US dollar rose 0.01% to 0.6788 levels, compared to the opening levels at 0.6787, after the pair achieved the highest during the trading session at 0.6795, while the lowest level at 0.6786.

This was followed by the preliminary reading of Australia's Manufacturing and Services PMI for November which showed the manufacturing sector contracted to 49.9 vs. 50.0, which was revised from 50.1 in October, and the service sector contracted. To 49.5 versus widening at 50.1 which returned from widening at 50.8 in October.

On the other hand, investors are awaiting the release of the preliminary reading of the manufacturing and services PMI from the US, amid expectations that the initial reading of the industrial sector will expand to 51.5 vs. 51.3 in the previous reading for October, as may show the preliminary reading The Services PMI widened to 51.2 from 50.6 in October.

The final reading of the University of Michigan's consumer confidence index, which may show an expansion to 95.8 compared to 95.7 in the previous initial reading and 95.5 in October, comes hours after the release of last Wednesday's minutes of the FOMC meeting held on 29-30 October, when interest rates were cut for the third time in a row by 25 basis points to between 1.50% and 1.75%.

Technical Analysis

AUDUSD is attempting to break the support line shown above, noting that the Stochastic is providing a negative crossover signal now waiting for the price to break the mentioned support and open the way to achieve our negative targets starting at 0.6725 then 0.6670.

Therefore, the bearish trend will remain valid for the upcoming period unless breaching 0.6840 and holding above it.

Expected trading range for today is between 0.6740 support and 0.6820 resistance.

Expected trend for today: Bearish.