AUD analysis 11.02.2020

The Australian dollar rose during the Asian session to witness its bounce to the third session from the lowest since March 18 of 2009 against the US dollar, following developments and economic data that were reported by the Australian economy and on the cusp of developments and economic data expected today Tuesday by the US economy, which includes the launch of the activities Federal Reserve Governor Jerome Powell's semi-annual testimony before the Congress in Washington.

At 2:50 am GMT, the Australian dollar pair rose against the US dollar by 0.24% to 0.6703 levels compared to the opening levels at 0.6687, after the pair achieved its highest level during the trading session at 0.6708, while the pair achieved its lowest at 0.6681.

On the Australian economy, we have followed the release of the Australian National Bank’s business confidence index, which showed the contraction widened to 2 vs. 1 in the previous reading last December, while the same indicator of confidence in the current conditions showed the expansion of expansion at what it valued 3 little changed from what it was in the previous reading of December.

On the other hand, investors are currently closely watching for the launch of the activities of the semi-annual testimony of Federal Reserve Governor Jerome Powell before the Congress, where Powell is expected to present today the first half of his half-year testimony about monetary policy before the Financial Services Committee in the House of Representatives, before he makes Tomorrow, Wednesday, the second half of his testimony before the Senate Banking Committee.

Markets are also looking ahead by the US economy for the release of a job readability statistic and job turnover that may reflect an increase to 6.93 million compared to 6.80 million in November, and that comes before we witness the speech of FOMC members Randall Quarlis About banking radiance in Connecticut, all the way to the talk of Minneapolis Federal Reserve Chairman Neil Kashkari at the City Hall event in Montana.

Technical analysis

The Australian dollar versus the US dollar did not show any strong movement in the previous sessions, to maintain its stability below the level of 0.6754, and therefore, our expectations for the downside trend will remain valid for the next period, supported by the negative pressure that the EMA50 forms, noting that we are waiting for the break of the 0.6670 level to confirm It opened the way towards heading towards 0.6560 as a next target.

The expected trading range for today is between 0.6650 support and 0.6750 resistance.

Expected trend for today: bearish.