AUD analysis 04.12.2019

The Australian dollar fluctuated in a narrow range tilted towards the decline during the Asian session to witness its bounce for the second session from the top since November 11 against the US dollar counterpart following the economic developments and data that it had reported on the Australian economy and on the cusp of developments and economic data expected today Wednesday from the economy The American is the largest economy in the world.

At exactly 03:03 AM GMT, the Australian dollar pair fell against the US dollar by 0.25% to 0.6830 levels compared to the opening levels at 0.6847, after the pair achieved its lowest during the trading session at 0.6828, while achieving the highest at 0.6854.

We have followed the Australian economy about the disclosure of the services index reading by the Australian Industrial Group (AIG), which reflected the shrinkage of expansion to a value of 53.7 compared to 54.2 last October, and this came before we witnessed the release of the GDP index, which showed a slowdown The pace of growth during the third quarter to 0.6% compared to 0.4% in the previous reading for the second quarter of last year, worse than the expectations that indicated a growth of 0.5%.

In the same context, the annual reading of GDP showed an acceleration in the growth rate to 1.7%, in line with expectations, compared to 1.6% in the previous annual reading for the second quarter, and this comes hours after the Reserve Bank of monetary policy makers decided to stay on the short-term benchmark interest rates It is at its lowest ever for the second consecutive meeting at 0.75%.

On the other hand, investors are looking for the US economy to disclose preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the acceleration of the pace of job creation to 137 thousand added jobs compared to 125 thousand added jobs in October, hours before From the disclosure of the monthly report of jobs except agricultural and unemployment rates in addition to the hourly rate for the month of November.

This comes before we witness the issuance of the final reading of the service provision institute index by Marquette about the United States, which may reflect the stability of the expansion at 51.6, little changed from the initial reading for November and 50.6 in October, and we would like to point out that the service provision Its importance is that the service sector in the United States accounts for more than two-thirds of GDP.

Up to the disclosure of the Institute of Service Supply index reading, which may show a shrinkage of expansion to 54.5 compared to 54.7 in October, and this comes before we witness the Deputy Governor of the Federal Reserve and member of the Federal Open Market Committee Randall Quarles testifying before the Financial Services Committee in the Council Representatives in the capital of the United States of America Washington.

Technical analysis

The Australian dollar versus the US dollar fluctuates around the EMA50 and maintains its stability above it, and as long as the price is above the level of 0.6755, our expectations for the upward trend will remain valid and effective for the next period, as the price moves inside the upward channel that appears in the picture, pending the direction towards 0.7015 that represents our goal The next major.

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

Expected trend for today: bullish.