AUD analysis 06.02.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce for the third consecutive session from the lowest since October 2, when it tested the lowest since 18 March 2009 against the US dollar after the developments and economic data The Australian economy is on the cusp of developments and economic data expected Thursday by the US economy, the largest economy in the world.

At exactly 02:44 am GMT, the Australian dollar pair rose against the US dollar by 0.06% to 0.6752 levels compared to the opening levels at 0.6746, after the pair achieved its highest level during the trading session at 0.6763, while the pair achieved its lowest at 0.6745.

We have followed on the Australian economy to reveal the reading of the Trade Balance Index, which indicated that the surplus has shrunk to A $ 5.22 billion, compared to A $ 5.52 billion last November, contrary to expectations for a surplus of A $ 5.65 billion, in conjunction with the release of a reading The retail sales index, which showed a 0.5% decline compared to a 1.0% rise in November, was worse than the expectations that indicated a 0.2% decline, and that came before we saw a reading of the business confidence index showed the decline in its value at 1 during the last fourth quarter.

On the other hand, investors are currently awaiting by the US economy the disclosure of the initial reading of the single labor cost index, which reflects the slowdown in growth to 1.3% compared to 2.5% in the third quarter, while the initial reading of the productivity of the sectors other than agriculture may show a rise of 1.6% against a decline of 0.2% In the third quarter, in conjunction with the release of the weekly reading of the claims claim index, which may show a decrease of 1 thousand applications to 215 thousand applications.

Technical analysis

The Australian dollar versus the US dollar fluctuated around the level of 0.6754 and closed the daily candle below it, so that the bearish trend scenario remains effective for the coming period, supported by the moving average 50 that presses negatively on the price, besides that the stochastic indicator is losing its positive momentum significantly, waiting for the resumption of the decline that targets areas Initial 0.6670.

We remind you that breaching 0.6754 will push the price to visit the 0.6820 level before any new negative attempt.

The expected trading range for today is between 0.6700 support and 0.6780 resistance.

Expected trend for today: bearish.