AUDUSD analysis 12.05.2020

The Australian dollar fell during the Asian session to witness its bounce for the second consecutive session from its highest since late April, when it tested its highest since March 10 against the US dollar after the developments and economic data that it had reported on the Australian economy and on the cusp of developments and economic data expected today Tuesday by the US economy, which includes the speech of members of the Federal Open Market Committee.

At exactly 03:33 am GMT, the Australian dollar pair fell against the US dollar by 0.62% to 0.6449 levels compared to the opening levels at 0.6489, after the pair achieved its lowest level during the trading session at 0.6432, while achieving the highest at 0.6493.

On the Australian economy, we have followed the release of the Australian National Bank’s business confidence index, which showed contraction has shrunk to 46 versus 65 in the previous reading last March, while the same indicator of confidence in the current conditions showed that deflation has widened to 34 versus 21 in the previous reading for March.

On the other hand, investors are waiting for the US economy to disclose inflation data with the release of the CPI reading that may show the contraction widening to 0.7% compared to 0.4% in March, as the fundamental reading of the index may show the contraction widening to 0.2% versus 0.1%, And the annual reading of the index may reflect slowing growth to 0.4% versus 1.5%, as the substantial annual reading may show slowing growth to 1.7% versus 2.1%.

This comes before we witness the speech of members of the Federal Open Market Committee, President of the Federal Reserve Bank of America Patrick Harker about the economic impact of the Coronavirus in the Chamber of Commerce of Delaware in Wilmington, in conjunction with the testimony of the Deputy Governor of the Federal Reserve Randall Carls on supervision and regulation before the Banking Committee of the Council The elders in Washington.

Up to the US Treasury revealed a reading of the federal budget, which may reflect the widening deficit of $ 729.7 billion compared to $ 119.1 billion in March, before we witness the speech of the Federal Open Market Committee member and President of the Cleveland Bank Federal Reserve Loretta Mester about monetary policy And economic outlook at the Association of Certified Financial Analysts in Chicago, via satellite.

Technical analysis

The Australian dollar pair against the US dollar stopped at the EMA50, in conjunction with the emergence of a positive crossover signal through the stochastic, waiting for the price to rise again, to keep the bullish trend scenario active and effective for the coming period, which targets 0.6685 as the next main station.

The ascending channel continues to organize the suggested ascending wave, which will remain intact, provided stability above 0.6407 level.

The expected trading range for today is between 0.6430 support and 0.6570 resistance.

Expected trend for today: bullish.