AUDUSD analysis 27.04.2020

The Australian dollar rose by nearly one percent during the Asian session to witness its highest since April 15 against the US dollar amid the scarcity of economic data today Monday by the Australian economy and also by its American economy counterpart the largest economy in the world at the beginning of this week which carries with it The FOMC meeting tomorrow, Tuesday and Wednesday in Washington.

At exactly 03:03 AM GMT, the Australian dollar pair rose against the US dollar by 0.75% to 0.6430 levels compared to the opening levels at 06382, after the pair achieved its highest level in two weeks at 0.6439, while it achieved its lowest during the trading session at 0.6380, Knowing that the pair started the trading session on an upward price gap after it concluded the trading last week at 0.6371 levels.

Investors are awaiting tomorrow, Tuesday, to the launching of the FOMC meeting 28-28 April, through which the short-term benchmark interest rates are expected to remain at zero levels between zero and 0.25%, before we witness the day after tomorrow Wednesday. The press conference will be held by Federal Reserve Governor Jerome Powell half an hour after the FOMC meeting in Washington expires.

We would like to point out, that the Federal Reserve monetary policymakers adopted at the previous Federal Open Market Committee meeting held on March 15th that surprising meeting, which was the second in less than two weeks after the previous sudden meeting on the third of the same month, to return interest on Federal funds to zero levels while reducing interest rates at the time by 100 basis points from between 1.00% and 1.25%.

It is noteworthy that the return of the members of the Federal Open Market Committee to the interest of the federal funds to the zero levels that remained since 2008 until the meeting of 27-28 October 2015, and came after reducing them in the previous emergency meeting by 50 basis points from between 1.50% and 1.75 %, And after the committee members cut interest three times by 25 basis points in previous meetings last year 2019.

In the same context, the Federal Open Market Committee announced in the middle of last month that it will carry out repurchases of treasury bonds of at least $ 500 billion per month and mortgage-backed securities of at least $ 200 billion per month, provided that these purchases are made at the appropriate speed to support The smooth performance of the stock market, treasury and mortgage agency.

Technical analysis

The Australian dollar pair fluctuates against the US dollar near the level of 0.6407 and remains below it, accompanied by the arrival of the stochastic to the overbought areas, waiting for the price to stimulate the resumption of the expected bearish direction for the next period, which begins its goals by testing the level of 0.6236, noting that breaking this level will pay the price To 0.6097 as next negative station.

On the other hand, a break of 0.6407 will stop the expected decline and lead the price to achieve additional gains reaching 0.6500 initially.

The expected trading range for today is between 0.6300 support and 0.6450 resistance.

Expected trend for today: bearish.