AUDUSD analysis 02.06.2020

The Australian dollar fluctuated in a narrow range tilted towards the decline during the Asian session to witness its rebound from above since January 27 against the US dollar after the economic developments and data that were adopted today by the Australian economy and on the cusp of the decisions and directions of the Reserve Bank of Australia and amid the scarcity of data Economic by the American economy the largest economy in the world.

At exactly 02:35 am GMT, the Australian dollar pair declined against the US dollar by 0.25% to 0.6781 levels compared to the opening levels at 0.6798, after the pair achieved its lowest level during the trading session at 0.6777, while the pair achieved its highest in five months when 0.6813.

This followed us on the Australian economy, the release of the current account reading, which showed the widening of the surplus to 8.4 billion Australian dollars compared to 1.7 billion Australian dollars in the fourth quarter, outperforming the expectations that indicated the expansion of the surplus to 6.3 billion Australian dollars, and this came amid looking forward to the activities of the Bank of Australia meeting The Reserve and the Australian Central Bank revealed the interest rate statement amid expectations to hold it at its lowest level ever at 0.25%.

In another context, markets assessed the possibilities of the US military deploying in the United States to suppress social strikes and violent demonstrations in cities over the killing of George Floyd of African descent by the police, after the curfew failed to contain massive protests that included violence and looting with demonstrators taking to the streets after weeks Closings during the Corona pandemic, which has caused millions to lose their jobs.

It is worth noting that these expanded strikes taking place in America have strengthened concern about the coronary virus outbreak more broadly among these human groupings and restored fears about the chances of recovery for the economy that is just emerging from the Great Depression in the thirties of the last century. American, while describing them as weak and that they must take more stringent measures in dealing with the protests.

Technical analysis

The Australian dollar versus the US dollar made a positive trading yesterday, exceeding the level of 0.6774 and settling above it, which supports the expectations of the extension of the bullish wave in the short and medium term, with a reminder that our next stop reaches 0.6900.

Thus, the bullish trend scenario will remain valid and active for the upcoming period, noting that a break of 0.6745 may press the price to test 0.6684 then 0.6645 areas before any new attempt to rise.

The expected trading range for today is between 0.6720 support and 0.6850 resistance.

Expected trend for today: bullish.