AUD analysis 18.03.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce to the second session from the lowest since April 7, 2003 against the US dollar amid the growing fears of the spread of the Corona virus epidemic globally and in the wake of the developments and economic data that were followed by the Australian economy on the cusp of Economic developments and data expected today, Wednesday, by the American economy, the largest economy in the world.

At exactly 03:18 AM GMT, the Australian dollar pair rose against the US dollar by 0.25% to 0.6015 levels compared to the opening levels at 0.5999, after the pair achieved its highest level during the trading session at 0.6026, while achieving the lowest at 0.5982.

This has been followed by the Australian economy. The reading of the leading indicators was released by the Melbourne Institute, which showed a decline of 0.4% against the stability at zero levels in January, and this came before we witnessed the release of the initial reading of the retail sales index, which showed an increase of 0.4% against a decrease of 0.3% In January, hours after the Reserve Bank of Australia disclosed the minutes of its March 3 meeting.

It is reported that monetary policy makers at the Australian Central Bank approved early this month to reduce short-term reference interest rates by 25 basis points to 0.50%, which is the lowest level ever, which came in line with expectations at the time, and this comes in the wake of the confirmation of the Australian central The interest rates are at 0.75% in the previous three meetings, and after reducing them by 25 basis points three times in previous meetings last year.

On the other hand, investors are currently awaiting the release of housing market data by the US economy, with the release of both the beginning construction index and the building permit index, and amid expectations that the reading of building permits reflects a 3.2% decline to 1,500,000 permits compared to a rise of 9.2% at 1,551 thousand permits In January, the readings for homes that were built may also reflect a 4.3% decline to about 1,507 thousand homes, compared to a rise of 16.9% at 1,567 thousand homes.

This comes hours after the Federal Reserve announced that it will enter the commercial paper markets, which have been frozen in the midst of the economic turmoil, which threatens businesses that need financing between today and the other, and the Federal Open Market Committee stated that it will establish a financing facility for commercial papers to support the cash flow of homes and businesses and that it Form a special purpose vehicle for buying any securities of unsecured assets with $ 10 billion in support from the Treasury.

Technical analysis  

AUDUSD managed to achieve our awaited target at 0.6000 and made an attempt to break it. Waiting to break this level and resume the main bearish trend, whose next main target is at 0.5880.

Consequently, the downside scenario will remain valid and active during the coming period, noting that 0.6050 breach will lead the price to make some bullish correction and initially test 0.6200 areas before any new attempt to decline.

The expected trading range for today is between 0.5930 support and 0.6100 resistance.

Expected trend for today: bearish.