AUD analysis 10.01.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session, to promise to end its longest march of daily losses in six months against the US dollar after the economic developments and data that it had reported on the Australian economy and on the cusp of developments, data and developments expected on Friday by the American economy, the largest economy in the world.

At exactly 02:54 AM GMT, the Australian dollar pair rose against the US dollar by 0.01% to 0.6859 levels compared to the opening levels at 0.6858, after the pair achieved its highest level during the trading session at 0.6871, while achieving the lowest at 0.6851.

On the Australian economy, we followed the disclosure of the services index reading by the Australian Industrial Group (AIG), which reflected a contraction of 48.7 compared to a expansion of 53.7 last November, and this came before we witnessed the release of the retail sales index, which showed an acceleration Growth to 0.9%, compared to 0.1% last October, beating expectations for 0.4% growth.

On the other hand, investors are currently awaiting by the US economy the disclosure of labor market data for the past month, which may reflect the stability of unemployment rates at the lowest in five decades of time at 3.5%, while a reading of the employment change index for sectors other than agriculture may show a slowdown in the pace of creation Jobs to 162 thousand jobs compared to 266 thousand jobs. The reading of the average hourly income index may show that the growth accelerated to 0.3% compared to 0.2%.

Technical analysis

The Australian dollar versus the US dollar hovering around the EMA50, and we are still waiting for a further drop to test the support of the bullish channel at 0.6795, to keep the negative scenario valid for the next period, taking into account that the breach of 0.6920 will stop the expected decline and lead the price to head towards 0.7015 areas again.

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

Expected trend for today: bearish.