AUDUSD analysis 24.07.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session, its stability near its highest level since mid-April of 2019 against the US dollar, following developments and economic data that it had reported on the Australian economy and on the cusp of developments and economic data expected on Friday by the largest US economy Economy of the world.

At 2:29 am GMT, the Australian dollar pair rose against the US dollar 0.20% to 0.7112 levels compared to the opening levels at 0.7098, after the pair achieved its highest level during the trading session at 0.7125, while the pair achieved the lowest at 0.7093.

We have followed the revelation of the initial reading of the Markit Industrial and Services Purchasing Managers Index for Australia for the current month of July, and the initial reading of the Industrial Purchasing Managers' Index showed a widening of 53.4 compared to 51.2 last June, as the initial reading of the purchasing managers index showed The service expanded to 58.5, compared to 53.1 in June.

On the other hand, investors are currently awaiting the disclosure of the initial reading of the Markit Industrial and Services PMI for the United States of America, which may reflect the expansion of the industrial sector in the largest industrial country in the world to a value of 52.0 compared to a contraction of 49.8 in the previous reading of June June, as the service sector may expand to 51.0 compared to 47.9 in June.

This comes before we witnessed by the US economy the disclosure of housing market data with the release of the New Home Sales Index, which may indicate an increase of 4.0% to about 700 thousand homes compared to a rise of 16.6% at 676 thousand homes last May. Other than that, we followed up yesterday, US Treasury Secretary Stephen Munchen reported that the White House is providing about $ 2 trillion to mitigate the negative effects of the Corona pandemic.

The US Treasury Secretary Mentchin also expressed that the security of jobs within the American economy is among the priorities in the draft law to confront the next coronavirus, adding that the US administration is currently looking at unemployment benefits that represent about 70% of wages and that he touched that his country would work to stabilize the dollar American and that the White House agreed to provide $ 16 billion in the new bill to conduct a coronavirus test.

Technical analysis

The Australian dollar versus the US dollar shows quiet negative trading to gradually creep towards the main bullish channel support that is now at 0.7025, noting that SMA 50 continues to provide positive support for the price, which encourages us to continue to suggest the bullish trend that targets the 0.7200 level as the next station.

On the other hand, it should be noted that a break of 0.7025 will stop the suggested rise and press the price to start a bearish corrective wave over the intraday basis.

The expected trading range for today is between 0.7030 support and 0.7170 resistance.

Expected trend for today: bullish.