AUDUSD analysis 08.07.2020

The Australian dollar fluctuated in a narrow range slanting back down during the Asian session to witness its bounce for the second consecutive session from its highest since June 11 against the US dollar amid the scarcity of economic data today Wednesday from the Australian economy and its American counterpart, the largest economy in the world.

At exactly 03:17 AM GMT, the Australian dollar versus the US dollar fell 0.03% to 0.6945 levels compared to the opening levels at 0.6947, after the pair achieved its lowest level during the trading session at 0.6933, while the pair achieved its highest at 0.6954.

On Tuesday, we followed the decisions and directions of monetary policy makers at the Reserve Bank of Australia that were taken during the activities of the meeting of the Australian Central Bank held on the seventh of July, during which the short-term reference interest rates were kept unchanged for the fourth consecutive meeting at 0.25%, which is the lowest level ever, which came in line with expectations.

The Australian Central Bank’s interest rate statement yesterday stated that the situation has stabilized recently and the decline has become less than expected and that the uncertainty about the health status and future strength of the economy makes many families and companies cautious and that this in turn affects consumption and investment plans, with an emphasis on not increasing the interest until Progress towards full employment, amid their confidence that inflation will be sustainably within the target range between 2% and 3%.

Technical analysis

The Australian dollar versus the US dollar is testing the moving average 50 and maintains its stability above it, and the positive effect of the symmetrical triangle pattern is still effective, pending the resumption of positive trades to visit the 0.7064 level as a next main station.

Consequently, we will maintain our bullish expectations for the upcoming period unless the 0.6870 level is broken and stability below it.

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

Expected trend for today: bullish.