AUD analysis 08.01.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its rebound from above since October 19 against the US dollar, following the economic developments and data that it had reported on the Australian economy and on the cusp of developments, data and developments expected on Wednesday by the largest US economy Economy of the world.

At exactly 03:43 am GMT, the Australian dollar pair rose against the US dollar by 0.01% to 0.6871 levels compared to the opening levels at 0.6870, after the pair achieved its highest level during the trading session at 0.6884, while achieving the lowest in three months at 0.6850 .

We have followed on from the Australian economy the release of the construction index reading by the Australian Industrial Group (AIG), which showed the contraction widened to 38.9 compared to 40.0 in November, and this came before we witnessed the disclosure of housing market data with the release of the building permits reading which showed an increase 11.8% against a decline of 7.9% in October, ahead of expectations that indicated a rise of 2.1%, while the annual reading of the same index showed the decline decreased to 3.8% compared to 22.9%, outperforming expectations that indicated a decline to 11.7%.

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 160 thousand added jobs compared to 67 thousand added jobs in November, and that comes before To witness a speech from the Federal Reserve Governor and member of the Federal Open Market Committee to Elle Brenard, entitled "Modernization of the Community Reinvestment Act" at the Urban Institute in Washington.

Technical analysis

The Australian dollar versus the US dollar pair succeeded in achieving our first awaited target at 0.6870, and shows more negative trading to begin the pressure on the EMA50, reinforcing the expectations of the continuation of the downtrend during the upcoming sessions, where our next target is located at 0.6790.

Therefore, we await further decline today, with a reminder that the continuation of the descending wave depends on stability below 0.7015.

The expected trading range for today is between 0.6800 support and 0.6920 resistance.

Expected trend for today: bearish.