AUDUSD analysis 01.06.2020

The Australian dollar rose by more than one percent during the Asian session to witness its highest since February 13 against the US dollar, following developments and economic data that were reported by the Australian economy and the Chinese economy as Australia's largest trading partner and on the cusp of developments and economic data expected today Monday by the US economy The largest economy in the world.

At exactly 02:42 am GMT, the Australian dollar pair rose against the US dollar by 1.07% to 0.6731 levels compared to the opening levels at 0.6660, after the pair achieved its highest level in four months at 0.6738, while the pair achieved its lowest during the trading session at 0.6646, knowing that the pair started the trading session on a falling price gap after it concluded the trading of the first half of 2020 at 0.6667.

On the Australian economy, we have followed the disclosure of the AIG manufacturing reading, which showed the contraction has shrunk to 41.6 compared to 35.8 last April, and this came before the Melbourne Institute (MI) revealed the inflation gauge reading, which The contraction expanded to 1.2% versus 0.1% in April, while the annual reading of the same index showed growth slowed to 0.1% versus 1.2%.

Other than that, the markets are looking to tomorrow, Tuesday, for the decisions and directions of monetary policy makers at the Reserve Bank of Australia, and the Australian Central Bank revealed a statement of interest rates amid expectations of fixing interest rates at the lowest ever at 0.25%, before we witness tomorrow, Wednesday, the disclosure of quarterly growth data Last first.

In another context, we followed yesterday, Sunday, the China Federation of Logistics and Procurement (CFLP) revealed the data of the industrial and services sector for the past month, which indicated that the industrial sector shrank to 50.6 compared to 50.8 in April, contrary to expectations that it expanded to 51.1, while expansion The service sector rose to 53.6 compared to 53.2 in April, beating expectations for a expansion of 53.5.

On the other hand, markets are looking to reveal the final reading of the manufacturing PMI by Markit for the United States, which may reflect the stability of the contraction at $ 39.8, little changed from the initial reading of last month and compared to the contraction at 36.1 in April, before we witness By the US economy, the construction spending index showed a 6.5% decline compared to a 0.9% rise in March.

This comes in conjunction with the disclosure also by the largest industrialized country in the world about the reading of the Institute of Industrial Supply index, which may show contraction shrinkage to 43.5 compared to 41.5 in April, as the reading of the Institute of Industrial Supply measured in prices may indicate shrinkage of deflation to its value 40.0 vs. 35.3, and we would like to point out, because the reading issuance at a value of 50 or higher reflects amplitude, while its issuance less than 50 indicates contraction.

Technical analysis

The Australian dollar versus the US dollar pair began trading today with a strong rise to be able to penetrate the level of 0.6685 and hold above it, which supports the continuation of our effective expectations for the upward trend during the upcoming sessions, paving the way for the trend towards 0.6774 which represents our next main goal.

Consequently, the bullish trend will remain valid and active, provided stability above 0.6685, and most important above 0.6605, noting that SMA 50 supports the expected rise.

The expected trading range for today is between 0.6670 support and 0.6800 resistance.

Expected trend for today: bullish.