AUD analysis 03.12.2019

The Australian dollar fluctuated in a narrow range tilted to decline during the Asian session to witness the rebound for the second session from its highest since November 20 against the US dollar following the developments and economic data that followed on Tuesday on the Australian economy and on the threshold of the decisions of the Reserve Bank of Australia and amid tightness Economic data by the US economy the largest economy in the world.

At 02:04 AM GMT, the AUDUSD fell 0.03% to 0.6817 compared to the opening levels of 0.6819, after the pair reached its lowest level during the session at 0.6815, while achieving the highest at 0.6824.

The Australian economy followed the release of the current account reading which showed the surplus widened to A $ 7.9 billion compared to A $ 4.7 billion in the second quarter, beating expectations for a widening surplus to A $ 6.1 billion, while a net reading showed Exports of GDP slowed the pace of growth to 0.2% compared to the previous reading of the second quarter and expectations of 0.6%.

Otherwise, investors are now eyeing the outcome of RBA policymakers' decisions and with the release of the RBA Interest Rate Statement amid expectations that it will hold for the second consecutive meeting after being cut this year by 25bp three times to 0.75%. Ahead of Wednesday's release of the third quarter growth data, which may reflect a steady pace of 0.5% growth.

Technical Analysis

AUDUSD was supported by the bullish intraday channel shown above and rebounded significantly to attack 0.6840 and now move above it, signaling the direction of the pair for an expected bullish correction in the coming period, on its way to test 0.7015 initially.

Therefore, the bullish bias is expected for today, supported by the positive stochastic, with a break of 0.6755 that will stop the expected rally and press the price down again.

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

Expected trend for today: Bullish.