AUDUSD analysis 14.05.2020

The Australian dollar fell during the Asian session to witness its bounce for the fourth consecutive session from the top since late April, when it tested its highest since 10 March 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 Thursday by the US economy, which includes the talk of Federal Committee member Neil Kakkari later today.

At exactly 02:50 am GMT, the Australian dollar pair fell against the US dollar by 0.25% to 0.6439 levels compared to the opening levels at 0.6455, after the pair achieved its lowest level during the trading session at 0.6421, while achieving the highest at 0.6468.

We followed up on the Australian economy the release of the Melbourne Institute reading of consumer expectations for inflation, which showed a decrease to 3.4% compared to 4.6% last April, and this came before the disclosure of labor market data with the release of unemployment rates, which showed an increase to 6.2% compared to 5.2% Last March, outperforming expectations at 8.3%, in conjunction with the reading of change in employment showed a decline by 594.3 thousand compared to a rise of 0.7 thousand in March, worse than expectations that indicated a decline of 575.0 thousand.

On the other hand, investors are currently awaiting by the American economy for the release of the index of subsidy requests for the last week on the ninth of May, which may reflect a decline of 669 thousand requests to 2,500 thousand requests compared to 3,169 thousand requests in the previous reading, while the reading of subsidy applications may appear Continuing for the last week in the second of this month, increasing by 2,453 thousand requests to 25,100 thousand requests compared to 22,647 thousand requests.

This comes in conjunction with the release of the import price index, which may explain the widening decline to 3.1% compared to 2.3% in March, and hours after Federal Reserve Governor Jerome Powell expressed yesterday that "despite the fact that the economic response was timely and large enough, However, it may not be the last chapter, given that the road ahead is very uncertain and subject to great risks. "

Powell also warned that the potential economic recession may be deeper and longer without additional fiscal stimulus, which reduced appetite for risk among investors, especially with the uncertainty that markets are witnessing in reopening global economies and easing the social divergence measures that have been imposed as part of efforts to curb the spread of Coronavirus previously, which could lead to a possible second wave of deadly virus outbreaks with re-opening.

Technical analysis

The Australian dollar versus the US dollar pair faced negative pressure in the previous sessions to move below the EMA50, and we notice that the price fluctuates in a lateral path recently, and as long as the price is above 0.6407, our expectations for the upward trend will remain valid for the next period, and the price needs to exceed 0.6525 to enhance the opportunities of the trend About 0.6685 which is our next main target.

The expected trading range for today is between 0.6400 support and 0.6530 resistance.

Expected trend for today: bullish.