AUDUSD analysis 28.05.2020

The Australian dollar fluctuated in a narrow range slanting back down during the Asian session to witness its bounce for the second session from the top since March 9, when it tested its highest since February 20 against the US dollar after the Reserve Bank of Australia Governor Philip Lowe testified before the selection committee The Australian Senate on the Coronavirus and the economic data that it followed about the Australian economy and on the cusp of developments and economic data expected Thursday by the US economy, the largest economy in the world.

At exactly 02:34 am GMT, the Australian dollar pair fell against the US dollar by 0.02% to 0.6621 levels compared to the opening levels at 0.6622, after the pair achieved its lowest level during the trading session at 0.6612, while the pair achieved its highest at 0.6635.

This has followed us, and the Governor of the Australian Central Bank, Philip Lowe, has just expressed before the Australian Senate Selection Committee that the decline in jobs may push unemployment rates to 15% now compared to 20% as the first fear, with his assertion that the unusual negative interest rates are not likely and that he is also It is not likely to raise interest for a few years, and it may take a prolonged instinct to reach full employment rates.

This came, before we also witnessed the Australian economy’s release of the reading of the private capital expenditures index, which indicated a decline in the decline to 1.6% compared to the previous reading for the fourth quarter and expectations at 2.6%. The minutes of the Bank of Australia’s recent reserve meeting stated last week that the speed and timing of the economic recovery Unconfirmed that he is ready to increase his purchases of bonds.

On the other hand, investors are currently awaiting by the US economy the disclosure of the second reading of the GDP index, which may confirm the contraction of the largest economy in the world by 4.8% during the first quarter, little changed from the previous initial reading and against a growth of 2.1% in the fourth quarter, while The second reading of the same index measured in prices shows the stability of growth at 1.3%, with little change from the first reading and the previous reading for the previous quarter.

This comes in conjunction with the disclosure of the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States of America, which may reflect the widening of the decline to 19.0% compared to 14.7% last March, as may appear The substantial reading of the same index extended the decline to 14.8% compared to 0.4% in March.

This also comes in conjunction with the issuance of the aid claims index for the past week on May 22, which may reflect a decline of 338 thousand applications to 2,100 thousand applications compared to 2,438 thousand requests in the previous reading, while the reading of the continuing benefit requests for the past week may appear in 15 From this month, an increase of 677 thousand requests to 25,750 thousand requests compared to 25,073 thousand requests.

This comes before we witness the disclosure of housing market data with the release of existing home sales, which may show a decline in decline to 15.0% compared to 20.8% in March, leading to the participation of FOMC members and New York Fed Chairman John Williams in a hypothetical discussion. At Stony Brook University Business School on Long Island.

Technical analysis

The Australian dollar versus the US dollar presented negative trades yesterday after facing strong resistance at 0.6685, to test the support of the main bullish channel that appears in the picture, where the EMA50 meets with this support to add more strength to it, while the stochastic starts providing positive signals now.

Consequently, we believe that opportunities are available to trade positively in the upcoming sessions, and targets start by crossing 0.6685 to open the way towards heading towards 0.6774 as a next station, noting that the continuation of the expected rise requires stability above 0.6565.

The expected trading range for today is between 0.6550 support and 0.6685 resistance.

Expected trend for today: bullish.