AUDUSD analysis 07.07.2020

The Australian dollar fluctuated in a narrow range tilted towards the decline during the Asian session, to witness its rebound from above since June 11 against the US dollar, following the developments and economic data that it had reported on the Australian economy and on the cusp of developments and economic data expected today Tuesday by the American economy, the largest economy in the world.

At exactly 03:25 am GMT, the Australian dollar versus the US dollar fell 0.14% to 0.6963 levels compared to the opening levels at 0.6973, after the pair achieved its lowest level during the trading session at 0.6955, while the pair achieved its highest in four weeks at 0.6998.

On the Australian economy, we followed the disclosure of the services index reading by the Australian Industrial Group (AIG), which reflected the widening of the contraction to 31.5 compared to 31.6 last May, and this came amid the market's aspiration to the decisions and trends of monetary policymakers at the Reserve Bank of Australia The Australian Central Bank revealed its interest rate statement amid expectations that interest rates will be fixed at an all-time low of 0.25%.

On the other hand, investors are currently awaiting by the US economy the disclosure of labor market data with the release of a job reading and job turnover reading that may reflect a decrease to 4.70 million compared to 5.05 million last April, and that comes before we witness the talk of a member of the Federal Committee For Open Market and Federal Reserve Governor Randall Carls on the Financial Stability Board at the Treasury Club Food Seminar online.

This comes hours after the data showed the US labor market for the month of June last Thursday, unemployment rates fell to 11.1% compared to 13.3% in May, outperforming the expectations that indicated a decline to 12.4%, with the reading of the employment change index for sectors other than Agri created 4,800,000 jobs compared to 2,699,000 added jobs in May, beating expectations for 3,037,000.

Technical analysis

The Australian dollar versus the US dollar pair faced strong resistance at the 0.7000 barriers, to show some slight bearish tendency now, indicating that the price lacks the positive momentum that is enough to push trading to continue the rise, waiting for gathering positive momentum that contributes to the resumption of the main bullish wave.

SMA 50 continues to support the price from below, to keep our expectations for the bullish direction over the intraday and short term, targeting the 0.7064 level as a next station, while stability above 0.6860 is an important condition for the suggested continuation.

The expected trading range for today is between 0.6900 support and 0.7040 resistance.

Expected trend for today: bullish.