AUDUSD analysis 14.07.2020

The Australian dollar fluctuated in a narrow range slanting back down during the Asian session to witness its bounce for the fourth consecutive session from the top since last June 11 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 today Tuesday by The American economy is the largest economy in the world.

At 02:35 am GMT, the Australian dollar pair declined against the US dollar 0.09% to 0.6934 levels compared to the opening levels at 0.6940, after the pair achieved its lowest level during the trading session at 0.6927, while the pair achieved its highest at 0.6947.

On the Australian economy, we have followed the disclosure of the Australian National Bank’s business confidence index, which showed a widening value of 1 versus a contraction at its value of 20 in the previous reading last May. Its value is 7 versus its value of 24 in May.

On the other hand, investors are currently waiting for the US economy to disclose inflation data with the release of the CPI reading that may show 0.5% growth versus a 0.1% contraction in May, as the substantial reading of the same indicator may show 0.1% growth versus 0.1% contraction While the annual reading of the index may reflect the acceleration of growth to 0.6% versus 0.1%, and the substantial annual reading may show a slowdown in growth to 1.1% versus 1.2%.

Technical analysis

The Australian dollar versus the US dollar traded negatively yesterday evening, to press SMA 50, noting that the stochastic is trying to gain positive momentum, as it reaches oversold areas now, while awaiting price stimulus to resume the main bullish trend.

So far, the bullish scenario is still effective with a price above 0.6880, noting that our expected main target is at 0.7064.

The expected trading range for today is between 0.6880 support and 0.7020 resistance.

Expected trend for today: bullish.