AUDUSD analysis 10.06.2020

The Australian dollar fluctuated in a narrow range tilted to the upside to resume its daily gains marches that erupted yesterday with its decline for the first time in nine sessions, which was considered the longest 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 The economic data expected today Wednesday by the US economy, which includes the activities of the Federal Open Market Committee meeting and the upcoming press conference of the Federal Reserve Governor Jerome Powell.

At exactly 02:58 AM GMT, the Australian dollar pair rose against the US dollar by 0.09% to 0.6967 levels compared to the opening levels at 0.6961, after the pair achieved its highest level during the trading session at 0.6968, while the pair achieved its lowest at 0.6933.

We have followed on from the Australian economy to reveal a reading of the Weissbank consumer confidence index, which showed slowing growth to 6.3% to 93.7% compared to 16.4% at 88.1 last May, and that comes hours before the disclosure tomorrow of consumers ’expectations for inflation with the release of the Institute’s reading Melbourne's consumer expectations for inflation may reflect a rise to 4.2% from 3.4% in May.

On the other hand, investors are anticipating the US economy to disclose inflation data with the release of the CPI reading that may show stability at zero levels versus a 0.8% contraction in April, as the fundamental reading of the index may show stability at zero levels versus a 0.4% contraction , And the annual reading of the index may reflect the slowdown in growth to 0.2% versus 0.3%, as the substantial annual reading may show 1.3% versus 1.4%.

This comes in conjunction with the actual meeting of the Federal Committee for the Open Market via satellite in Washington, which is expected to remain on the short-term reference interest rates for the second meeting at between zero and 0.25%, in conjunction with the disclosure of the Federal Committee data and the expectations of the members of the Committee for growth rates Inflation and unemployment as well as the future of interest rates for the next three years.

Up to the press conference to be held by Federal Reserve Governor Jerome Powell half an hour after the FOMC meeting ended to comment on the decisions of the Federal Reserve monetary policy makers who recently adopted several stimulus programs until the economy showed signs of recovery, led by the Treasury bond purchase program At $ 500 billion a month and mortgage bonds at least $ 200 a month.

Technical analysis

The Australian dollar versus the US dollar pair based on the 0.6900 barrier and bounced up to approach the 0.7000 areas now, which supports the continuation of the bullish scenario for the upcoming period, supported by the positivity of the stochastic, along with the moving average 50, which continues to carry the price from below.

A break of 0.7025 is required to confirm opening the way towards heading towards our main target awaited at 0.7200, while noting the importance of holding above 0.6884 for the continuation of the suggested bullish wave.

The expected trading range for today is between 0.6900 support and 0.7070 resistance

Expected trend for today: bullish