AUDUSD analysis 21.07.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness the highest since July 15, when it tested the highest since the tenth of June, after the developments and economic data that we followed about the Australian economy today, Tuesday, and before the Reserve Bank of Australia governor’s speech Philip Lowe via satellite and amid the scarcity of economic data earlier this week by the US economy, the largest economy in the world.

At exactly 02:01 am GMT, the Australian dollar pair rose against the US dollar 0.11% to 0.7024 levels compared to the opening levels at 0.7016, after the pair achieved its highest level in a week at 0.7035, while the pair achieved its lowest during the trading session at 0.7010.

We followed the Australian Central Bank revealed the minutes of its last meeting, which was held on the seventh of this month, during which interest rates for the fourth meeting were fixed at the lowest ever at 0.25%, and monetary policymakers at the Reserve Bank of Australia touched through the minutes because the exchange rate reflects expectations And that there is no need to interfere in the foreign exchange market, while stating that the negative interest rate policy is very unlikely.

It is noteworthy that the Australian central interest rate statement touched this month because 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 affects consumption and investment plans, and was confirmed by monetary policy makers at the time, However, the Australian central bank will not increase interest rates until progress is made towards full employment.

Technical analysis

The Australian dollar versus the US dollar pair is trading in a positive positivity to gradually approach our waited target at 0.7064, as it moves inside an ascending channel that supports the opportunities to overcome the mentioned level and open the way for achieving more gains during the coming period, heading towards 0.7200 areas as the next main station.

Thus, we will continue to favor the bullish trend over the intraday and short term, provided that the price maintains its stability above 0.6905.

The expected trading range for today is between 0.6960 support and 0.7100 resistance.

Expected trend for today: bullish.