AUDUSD analysis 09.06.2020

The Australian dollar fluctuated in a narrow range tilted towards the decline during the Asian session, to witness its rebound from above for it since July 23, 2019, and to promise to end its longest daily gains march since late 2017 and early 2018 against the US dollar, following the developments and economic data that it followed on the Australian economy and on The cusp of developments and economic data expected today Tuesday by the US economy, the largest economy in the world, which includes the launching of the activities of the Federal Open Market Committee meeting today and tomorrow, Wednesday.

At exactly 02:47 am GMT, the Australian dollar pair fell against the US dollar by 0.31% to 0.6999 levels compared to the opening levels at 0.7021, after the pair achieved its lowest level during the trading session at 0.6988, while the pair achieved its highest in nearly a year at 0.7021.

On the Australian economy, we have followed the release of the Australian National Bank’s business confidence index, which showed contraction has shrunk to 20 versus 45 April last, as the reading of the same indicator of confidence in the current conditions showed shrinkage to 24 to 34, and this came in conjunction with The disclosure of preliminary data for the labor market with the release of job announcements, which showed a 0.5% increase compared to a 53.4% ​​decline in April.

On the other hand, investors are currently awaiting by the US economy the release of the final reading of the wholesale stocks index, which may confirm an increase of 0.4%, unchanged from the previous initial reading for the month of April, and against a decline of 0.8% last March, in conjunction with the disclosure of data, The labor market with the release of a job read and a turnover statistic that may reflect a decrease to 5.75 million compared to 6.19 million in March.

Otherwise, the markets are looking at a later time for the launching of the FOMC meeting, which is taking place today and tomorrow, Wednesday via satellites in Washington, through which the short-term reference interest rates for the second meeting are expected to be between zero and 0.25% simultaneously. With the disclosure of the expectations of members of the Committee to the rates of growth, inflation, and unemployment in addition to the future interest rates for the next three years.

Up to the press conference that Federal Reserve Governor Jerome Powell will hold tomorrow, specifically, half an hour after the FOMC meeting ends, to comment on the decisions of the Federal Committee, which recently adopted many stimulus programs until the economy showed signs of recovery, led by the Treasury bond purchase program at $ 500 One billion monthly and mortgage bonds, at least $ 200 a month.

Technical analysis

The Australian dollar pair against the US dollar made positive trading yesterday, but it is due to the fluctuation around 0.7000, waiting for a positive incentive to contribute to pushing the price to resume the main bullish trend, which targets the 0.7200 level as a next station.

In general, the expected rise will remain valid unless the 0.6884 level is broken and stability below it, as breaking this level will press the price to drop towards 0.6750 before any new attempt to rise.

The expected trading range for today is between 0.6930 support and 0.7080 resistance.

Expected trend for today: bullish.