AUDUSD analysis 22.07.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its stability near its top since April 2019 against the US dollar after the economic developments and data released by the Australian economy before the developments and economic data expected today Wednesday by the American economy, the largest economy in the world.

At exactly 02:34 AM GMT, the Australian dollar pair rose against the US dollar 0.11% to 0.7136 levels compared to the opening levels at 0.7128, after the pair achieved its highest level during the trading session at 0.7145, while the pair achieved its lowest at 0.7123.

The Australian economy released a reading of the leading indicators, which showed a 0.4% decline to 107.1 compared to a 0.9% increase at 107.5 in the previous reading last April, while the reading of the confidence index in the economy showed that the decline widened to 0.5% to a value of 104.0 Against 2.6% at 104.5 in April.

This came before the release of the leading indicators reading by the Melbourne Institute, which showed the acceleration of growth to 0.4% compared to 0.2% in the previous reading last May, leading to the disclosure of the seasonally adjusted initial reading of the retail sales index, which reflected the slowdown in the growth rate to 2.4% against 16.9% in May, worse than expectations for a slowdown in growth to 7.1%.

On the other hand, investors are currently awaiting the release of the housing market data by the US economy with the release of the house price index, which may explain the acceleration of growth to 0.3% compared to 0.2% in the previous reading in April, before the release of the existing home sales index, which It may reflect a rise of 24.5% to about 4.77 million homes compared to a decline of 9.7% at about 3.91 million homes in the previous reading for the month of May.

Technical analysis

The Australian dollar against the US dollar pair managed to breach the 0.7064 level and hold above it, which supports the continuation of our effective expectations for the bullish direction during the coming period, and the way is open to achieving our next target which is at 0.7200.

Consequently, we are awaiting further rise today, supported by the EMA50 that protects trades within the main ascending channel, noting that the continuation of the ascending wave requires stability above 0.7000.

The expected trading range for today is between 0.7080 support and 0.7200 resistance

Expected trend for today: bullish