Australian Dollar Analysis 23-06-2020

The Australian dollar rose during the Asian session to witness its bounce for the second session from the lowest since 15 June, when it tested the lowest since the second of this month 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 on Tuesday from Before the American economy the largest economy in the world.
 
At exactly 02:33 AM GMT, the Australian dollar pair rose against the US dollar by 0.22% to 0.6923 levels compared to the opening levels at 0.6908, after the pair achieved its highest level during the trading session at 0.6935, while the pair achieved its lowest at 0.6858.
 
We have followed the revelation of the initial reading of the Markit Industrial and Services PMI for Australia for the current month of June, and the initial reading of the PMI showed that the contraction shrank to 49.8 compared to 44.0 last May, while the initial reading of the PMI Service purchases expanded to $ 53.2, compared to $ 26.9 in May.
 
This comes hours after Australian Central Bank Governor Philip Lowe expressed on Sunday that there are still many monetary policy measures that can be used, as he addresses the fact that the Australian dollar is not the crisis at the present time even though he wants to see it less, adding that he is It is hard to say at the moment that the Australian dollar’s position is overrated, though it stated that interest is likely to remain at its current low levels for years.
 
On the other hand, investors are currently awaiting the disclosure of the initial reading of the Markit Industrial and Service Purchasing Managers Index for the United States of America, which may reflect the expansion of the industrial sector in the largest industrial country in the world to a value of 50.0 compared to a contraction of $ 39.8 in the previous reading of the month of May May, while we may witness the shrinking of the service sector to 46.9 compared to 37.5 in May.
 
This comes before we witness from the US economy the release of the Richmond Industrial Index reading, which may reflect the contraction of shrinkage to 3 versus 27 in May, in conjunction with the disclosure of housing market data with the release of new home sales, which may indicate an increase of 3.5 % To about 637 thousand homes, compared to a 0.6% increase at about 623 thousand homes last April.
 

Technical analysis

  
The Australian dollar pair against the US dollar made positive trades yesterday, but it stopped without the broken support of the bullish channel, to start the day with a bearish tendency in a signal to resume the bearish intraday trend, supported by the negative signal that appears through the stochastic indicator, so that the bearish trend scenario remains effective for the coming period, pending a visit Mainly 0.6700 level.
 
On the other hand, it should be noted that breaching 0.6965 will stop the suggested decline and bring the price back to the main bullish path again.
 
The expected trading range for today is between 0.6830 support and 0.6980 resistance
 
Expected trend for today: bearish