AUD analysis 26.02.2020

The Australian dollar fluctuated in a narrow range tilted toward the decline during the Asian session to witness its stability near its lowest in eleven years against the US dollar, following the developments and economic data that it had reported on the Australian economy and on the cusp of developments and economic data expected today Wednesday by the US economy, which includes members ’talk The Federal Open Market Committee.

At 02:45 am GMT, the Australian dollar pair fell against the US dollar by 0.03% to 0.6602 levels, compared to the opening levels at 0.6604, after the pair achieved its lowest during the trading session at 0.6588, while achieving the highest at 0.6607.

We have followed on from the Australian economy a release on the construction business index, which showed a 3.0% decline compared to a 0.4% increase in the last third quarter, worse than the expectations that indicated a 1.0% decline, on the other hand, investors are now looking for what will come out of a recent member of the Federal Committee For the open market and Dallas Fed Chairman Robert Kaplan at an emerging conference manager in Austin.

Markets are also looking to reveal the data of the US housing market from the release of the New Home Sales Index, which may explain an increase of 2.7% to about 713 thousand homes compared to a decline of 0.4% at about 694 thousand homes last December, to find another member of the Federal Committee, which is Minneapolis Federal Reserve Chairman Neil Kashkari delivered a speech titled "What You May Not Know About the Federal Reserve in Minneapolis" at the Minneapolis Board of Directors business forum.

Technical analysis

The Australian dollar versus the US dollar trades stable below the 0.6600 barrier, and is located under more negative pressure formed by the EMA50, to continue moving inside the descending channel that appears in the picture, waiting for further decline to visit the 0.6560 level which represents our next negative target.

Therefore, the downside scenario will remain effective for the upcoming period unless the price rushes to breach the 0.6670 level and stability above it.

The expected trading range for today is between 0.6550 support and 0.6630 resistance.

Expected trend for today: bearish.