Australian Dollar Analysis 18-06-2020

The Australian dollar fell during the Asian session to witness its bounce for the fourth session in seven sessions from the top since July 19, 2019, when it tested the highest since April 23, 2019 against the US dollar after the developments and economic data that were followed by the Australian economy on the cusp of Economic developments and data expected today, Thursday, by the US economy, the largest economy in the world.
 
At exactly 02:57 AM GMT, the Australian dollar versus the US dollar fell 0.42% to 0.6855 levels compared to the opening levels at 0.6884, after the pair achieved its lowest level during the trading session at 0.6838, while the pair achieved its highest at 0.6897.
 
We have followed the Australian economy on the disclosure of labor market data with the release of the unemployment rate reading, which showed an increase to 7.1% compared to 6.4% in April, worse than the expectations that indicated its rise to 6.9%, in conjunction with the reading of the change in employment showed a decrease of 227.7 thousand Against the decline of 607.4 thousand, also worse than expectations, which indicated a decline of 105.0 thousand, and also came in conjunction with the Reserve Bank of Australia revealed its quarterly bulletin.
 
On the other hand, investors are currently awaiting by the US economy the release of the index of subsidy requests for the week ending June 12, which may reflect a decline of 342 thousand requests to 1,300 thousand requests compared to 1,542 thousand requests in the previous reading, as may appear reading reading requests for relief Continuing for the week that ended on the fifth of this month, down by 1,129 thousand requests to 19,800 thousand requests, compared to 20,929 thousand requests.
 
This comes in conjunction with the disclosure by the largest industrialized country in the world of industrial sector data with the release of the Philadelphia Industrial Index reading, which may reflect the contraction in contraction to 23.0 compared to 43.1 last May, and before we also witnessed by the American economy the reading of indicators The leader, which may reflect a rise of 2.4%, compared to a decline of 4.4% last March.
 
To the talk of the President of the Cleveland Bank and the Federal Open Market Committee member Loretta Mester about the response of the Federal Reserve to the Corona pandemic in an event hosted by the World Takaful Center, and this comes hours after the activities of the semi-annual certification of the Governor of the Federal Reserve Jerome Powell about the monetary policy in front of Congress American.
 
We would like to point out, because Powell Naughty testified before the Congress that there is a state of uncertainty about the timing and strength of the potential economic recovery and that the current downturn may lead to widening inequality within America in the event that the matter is not contained, while touching that "until the confidence is restored that the Corona pandemic is under control." , A full recovery will not be possible "and that" the downward curve continues and with it the possibility of jobs falling under the risk of final loss and business closure "
 
Powell said earlier this week that it is unlikely that we will fully recover the largest economy in the world before restoring economic confidence, with his consideration of the fact that the epidemic has a greater impact on people with low incomes, while addressing the fact that the difference in high unemployment is now in 2008, that At that time, there were no jobs, while the current situation is the result of business closings and that with its return people return to their jobs.
 
Powell stressed that the Federal Reserve is ready to provide more stimulus if the need arises and that the Federal Open Market Committee will do everything in its power to support the American economy, and that he touched on the fact that the Federal Reserve works to ensure the effectiveness of protection and safety systems before working to issue a digital dollar , Adding that if it turns out that the digital currency will be beneficial to the American economy, then the Federal Reserve will work to issue it.

Technical analysis

  
The Australian dollar versus the US dollar is making new attempts to break the support of the bullish channel, but we rely on the stability of the daily closing above this support, which is now rising to 0.6885 to continue to favor the bullish trend for the next period, and the price needs to rise above this level to confirm the resumption of positive trades and head towards our first goal which It is at 0.7000.
 
On the other hand, it should be noted that stabilizing below 0.6885 will press the price to start a descending correction on the intraday basis.
 
The expected trading range for today is between 0.6800 support and 0.6950 resistance
 
Expected trend for today: bullish