AUD analysis 26.03.2020

The Australian dollar fell by more than one percent during the Asian session against the US dollar to resume the downward marches after its rise in the previous four sessions, which followed nine sessions of decline, amid the scarcity of economic data by the Australian economy and on the cusp of developments and economic data expected Thursday by the US economy is greater Economy of the world.

At 02:24 am GMT, the Australian dollar pair fell against the US dollar by 1.34% to 0.5879 levels compared to the opening levels at 0.5959, after the pair achieved its lowest level during the trading session at 0.5871, while achieving the highest at 0.5960.

Investors are currently awaiting by the US economy the disclosure of the GDP reading, which may reflect the stability of the expansion of the largest economy in the world at 2.1%, unchanged from the previous initial reading for the fourth and third quarter of the past, just as the reading of the same index measured in prices may reflect the stability of growth at 1.3 % Unchanged from the previous initial reading and against a growth of 1.8% in the previous reading for the third quarter.

This comes in conjunction with the issuance of the reading of the benefit requests index for the last week on March 21, which may reflect an increase of 1,367 thousand applications to 1,648 thousand applications compared to 281 thousand requests in the previous weekly reading, as the reading of the continuing benefit requests for the last week may appear on the 14th of This month, an increase of 81 thousand requests to 1,782 thousand requests compared to 1,701 thousand requests in the previous reading.

This also comes in conjunction with the issuance of reading merchandise trade balance index, which may show shrinking the deficit to 64.5 $ billion compared to 65.9 $ billion last January, and with the disclosure of the initial reading of the index of wholesale inventories, which may reflect a contraction of decline to 0.2% versus 0.4 % In January, otherwise, we followed yesterday the White House announcing that it had reached an agreement with Senate leaders on the stimulus package, which is estimated at $ 2 trillion.

Other than that, yesterday we followed the statements of the Director-General of the World Health Organization, Tidros Adhanum Gebresus, through which he expressed that children are vulnerable to infection with the virus (COVID-19) or what is known in the media as Coronavirus like the rest of the people, explaining that it is the global solidarity to face this serious threat and that The world is preparing for more severe measures to confront the coronavirus.

The Director-General of the organization, Gebrissos, also mentioned that precautionary measures should be taken, such as preventing gatherings and travel in addition to tracking and monitoring infected cases, adding that medical and health personnel, especially in poor countries where the virus is easy to spread, must be protected, according to the latest figures issued by the organization, so the number of cases has increased Infected with the virus to nearly 417,000 and 18,589 people were killed in 196 countries.

Technical analysis

Faced US Aussie against the dollar, the dollar pair negative pressure yesterday to break the 0.5958 level and closes the daily candle below, begins today with more decline to move away from this level, where he completed the formation of a rising wedge pattern features appear image, which puts the price under further downside pressure is expected for the next period , On the way to initially visit the 0.5786 level.

Therefore, the bearish bias will be expected for today, noting that breaching 0.5958 and holding above it will activate the bullish corrective scenario whose first target is at 0.6097.

The expected trading range for today is between 0.5786 support and 0.6000 resistance.

Expected trend for today: bearish.