AUDUSD analysis 10.07.2020
The Australian dollar fell during the Asian session to witness its rebound from above to it since last June 11, while it is still in the process of its third consecutive weekly gains against the US dollar amid the scarcity of economic data by the Australian economy and on the cusp of developments and economic data expected on Friday by The American economy is the largest economy in the world.
At 02:45 am GMT, the Australian dollar versus the US dollar fell 0.34% to 0.6940 levels compared to the opening levels at 0.6964, after the pair achieved its lowest level during the trading session at 0.6935, while the pair achieved its highest at 0.6966.
We followed yesterday, Australian Prime Minister Scott Morrison announced the suspension of the extradition treaty from Hong Kong, pointing out his concern about China's enforcement of the National Security Law in Hong Kong, and stressing that his country will facilitate travel for Hong Kong citizens. In return, the Ministry of Foreign Affairs announced The Chinese also yesterday strongly rejected Australia's position on what is happening in Hong Kong, and it regrets Australia's decision to freeze the extradition treaty with Hong Kong.
On the other hand, the markets are looking for the US economy to release the PPI reading, which is a preliminary inflation indicator that may reflect the stability of growth at 0.4% during June, while the fundamental reading of the same indicator may show 0.1% growth versus 0.1% contraction, and the reading may show The annualized index of contraction shrank to 0.2% from 0.8% in the previous reading, while the substantial annual reading may reflect an acceleration of growth to 0.4% against 0.3%.
Technical analysis
The Australian dollar versus the US dollar shows negative trades since yesterday, to test the MA 50 again, while the stochastic starts providing positive signals that we expect to contribute to pushing the price to resume the bullish trend suggested in our recent reports, which aims to test the 0.7064 level as the next station.
On the other hand, it should be noted that continuing the negative pressure and breaking 0.6870 will stop the suggested rise and press the price to achieve further decline during the upcoming sessions.
The expected trading range for today is between 0.6890 support and 0.7000 resistance.
Expected trend for today: bullish.
