AUDUSD analysis 10.04.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session to prepare in connection with weekly gains against the US dollar amid the scarcity of economic data in the last sessions of the week by the Australian economy because of the Good Friday holiday and on the cusp of developments and economic data expected on Friday by the American economy, which includes talk Members of the Federal Open Market Committee.

At exactly 03:06 AM GMT, the Australian dollar pair declined against the US dollar by 0.01% to 0.6341 levels compared to the opening levels at 0.6340, after the pair achieved its highest level during the trading session at 0.6344, while achieving the lowest at 0.6313.

Investors are awaiting the release of the inflation data by the US economy with the release of the consumer price index, which may reflect a 0.3% contraction versus 0.1% growth in February, while a substantial reading of the same indicator may show a slowdown in growth to 0.1% versus 0.2% in February In February, the annual reading of the index may show a slowdown in growth to 1.6% versus 2.3%, and a substantial annual reading of the index may show a slowdown in growth to 2.3% versus 2.4%.

This comes before we witness later in the day the speech of the members of the Federal Open Market Committee, President of the Cleveland Bank, Federal Reserve Loretta Mister, who is expected to talk about maintaining economic health during the crisis through satellites, and Deputy Governor of the Federal Reserve, Randall Carls, who is scheduled That talks about the banking system at the University of Utah also via satellite.

In the same context, we followed yesterday, Thursday, Federal Reserve Governor Jerome Powell about the state economy via satellites at the Brookings Institution, through which he noted that unemployment rates may rise strongly temporarily and that there will be entities that need direct financial support, while stating that the reserve The Fed has the ability to lend, but it does not have the ability to spend.

Powell also noted yesterday that there are signs that the recovery may be robust when it happens, while addressing the fact that market conditions have generally improved following measures taken by the Federal Reserve, and this came in the wake of his assertion that the Federal Reserve still has enough room to Take more action and stimulus to support the world's largest economy.

Powell's comments came hours after the Federal Reserve suddenly announced that additional $ 2.3 trillion in loans would be provided to support the economy and that it was working to provide assistance to all families and workers in American companies of all sizes, explaining that the debt of high-yielding companies would be purchased in addition to supporting government spending As well as the debts of small companies.

It is noteworthy that the Federal Reserve revealed last Wednesday the minutes of the Federal Open Market Committee meeting held on March 15th that surprising meeting, which was the second in less than two weeks after the previous surprise meeting on the third of the same month, which approved the monetary policy makers at The Federal Reserve returns short-term benchmark interest rates to zero levels.

The members of the Federal Open Market Committee reduced the interest on federal funds at the time by 100 basis points to between zero levels and 0.25%, which remained since 2008 until the meeting of 27-28 October 2015, after reducing them in the previous emergency meeting by 50 points The basis is between 1.50% and 1.75%, and this comes in the wake of the committee members cutting interest three times by 25 basis points in previous meetings last year.

The minutes of the meeting stated on Wednesday that the reduction decision is in effect from March 16, and that the Federal Open Market Committee will undertake repurchases of treasury bonds with at least $ 500 billion per month and mortgage-backed securities at least $ 200 billion per month, provided that Make these purchases at the appropriate speed to support the smooth performance of the stock market, treasury and mortgage market.

Otherwise, yesterday we followed the director of the American National Institute of Allergy and Infectious Diseases and the medical advisor to US President Donald Trump, that the number of deaths in America due to the virus (COVID-19) may be much lower than previous expectations, and it is reported that Trump noted Wednesday that he would like America's economy was opened up by the "big bang", but the death toll from the Corona virus outbreak must be on the slope first.

Technical analysis

The Australian dollar pair against the US dollar resumed its positive trades significantly to move away from the 0.6236 level, reinforcing the expectations of the continuation of the expected bullish direction on the intraday and short term, and the path is open to achieving our expected goal at 0.6407, noting that breaching this level will extend the upside wave to reach 0.6685.

Therefore, the bullish scenario will remain effective with the support of SMA 50, indicating that stability above 0.6236 is important to achieve the suggested targets.

The expected trading range for today is between 0.6260 support and 0.6450 resistance

Expected trend for today: bullish.