AUDUSD analysis 04.06.2020

The Australian dollar fell during the Asian session to witness its bounce for the second session from the top since January 3 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 American economy and in the shadows and pricing of investors to return Opening world economies against the escalation of protests in America.

At exactly 02:21 am GMT, the Australian dollar pair declined against the US dollar by 0.30% to 0.6900 levels compared to the opening levels at 0.6920, after the pair achieved its lowest level during the trading session at 0.6892, while the pair achieved its highest at 0.6933.

On the Australian economy, we have followed the release of the Trade Balance reading, which indicated that the surplus has shrunk to A $ 8.80 billion from A $ 10.45 billion in March, outperforming expectations that the surplus will shrink to A $ 7.50 billion, and that came before the revision of the revised initial reading Seasonally the retail sales index, which reflected a decline in the decline to -17.7% compared to the previous reading in April and expectations of -17.9%.

This comes hours after the reading of the GDP index for the first quarter yesterday showed a contraction of 0.3% against a growth of 0.5% in the fourth quarter, while the annual reading of the same indicator showed that the growth slowed to 1.4% in line with expectations against 2.2% in the fourth quarter, after hours On Tuesday, monetary policy makers at the Reserve Bank of Australia held interest rates for the third consecutive meeting at 0.25%.

On the other hand, investors are currently awaiting by the American economy the issuance of the index of subsidy requests for the past week on May 29, which may reflect a decline of 330 thousand requests to 1,820 thousand requests compared to 2,123 thousand requests in the previous reading, as may appear reading requests The ongoing benefit for the last week on the 22 of this month decreased by 1,002 thousand requests to 20,050 thousand applications compared to 21,052 thousand requests.

This comes in conjunction with the release of the merchandise trade balance reading, which may explain the deficit shrinking to $ 41.5 billion compared to $ 44.4 billion in April, and with the disclosure of the final reading of the productivity index and the cost of one work, and amid expectations that productivity shrinkage will remain at 2.5% and stability of the cost of one work At 4.8% unchanged from the first reading for the first quarter, compared to productivity growth of 1.2% and growth in the cost of one work 0.9% in the fourth quarter.

Technical analysis

The Australian dollar versus the US dollar shows some bearish tendency now to approach the pivotal support 0.6884, and as we pointed out yesterday, the price needs to hold above this level to keep the bullish trend scenario effective for the next period, with a reminder that breaking this level will put the price under a corrective downward pressure on the term Intraday.

The price needs a positive incentive that pushes trades to resume the main bullish trend, noting that our next main target extends to 0.7200.

The expected trading range for today is between 0.6830 support and 0.6970 resistance.

Expected trend for today: bullish.