AUDUSD analysis 03.04.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session. Today, Friday, by the American economy, the largest economy in the world.

At exactly 03:58 AM GMT, the Australian dollar pair rose against the US dollar by 0.07% to 0.6065 levels compared to the opening levels at 0.6061, after the pair achieved its highest level during the trading session at 0.6068, while achieving the lowest at 0.6046.

We have followed on from the Australian economy the release of the construction index reading by the Australian Industrial Group (AIG), which showed the contraction widened to 37.9 compared to 42.7 last February, and this came before we witnessed the release of the retail sales index, which indicated the acceleration of growth to 0.5 % Compared to the previous reading for February and expectations at 0.4%.

On the other hand, investors are currently waiting for the US economy to disclose labor market data with the release of the employment change index for sectors other than agriculture, which may reflect the loss of 100 thousand jobs compared to 273 thousand added jobs in February, while the average income index reading may show Hourly growth slowed to 0.2% versus 0.3%. This is with the unemployment rate reading showing an increase from the lowest in five decades at 3.5% to 3.8%.

This comes before we witness the issuance of the final reading of the Service Supply Institute index by Markit for the United States, which may reflect the widening of the contraction to 38.7 compared to 39.1 in the initial reading for the past month and against a contraction at 49.4 in February, and before revealing the reading of the Institute of Supply Index Service, which may show a contraction of 43.5 compared to 57.3 in February.

We would like to point out, because the reading issuance at 50 or higher reflects a widening, while its issuance is less than 50 indicating a contraction, and that the service provision in America lies in the fact that the service sector represents more than two-thirds of the gross domestic product, otherwise, Wednesday, US President Donald Trump warned of The coming period is "painful" for his country, after he recently announced the extension of the quarantine in America until the end of this month to limit the spread of the Corona virus.

Technical analysis

The Australian dollar pair trades against the US dollar bounced lower after testing the 0.6097 level yesterday, to keep the downside scenario effective for the coming period, regular within the descending channel that appears in the picture, waiting for a test of the level of 0.5958 initially, noting that breaking this level will push the price to 0.5787 as a target Next master.

On the other hand, we remind that a break of 0.6097 will stop the suggested decline and lead the price for new gains reaching 0.6236.

The expected trading range for today is between 0.5900 support and 0.6160 resistance.

Expected trend for today: bearish.