AUDUSD analysis 29.07.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session against the US dollar after the developments and economic data that we followed about the Australian economy and before the economic developments and data expected today Wednesday by the US economy, the largest economy in the world, which includes the activities of the Federal Open Market Committee meeting 28-29 July, ahead of the upcoming press conference by Federal Reserve Governor Jerome Powell.

At exactly 03:02 AM GMT, the Australian dollar pair rose against the US dollar 0.10% to 0.7165 levels compared to the opening levels at 0.7158, after the pair achieved its highest level during the trading session at 0.7174, while the pair achieved its lowest at 0.7149.

We have followed on from the Australian economy to disclose the inflation data for the second quarter, with the release of the consumer price index, which showed a contraction of 1.9% compared to 0.3% growth in the previous reading for the first quarter of last year, outperforming the expectations that indicated a contraction of 2.0%, while the core reading of the same indicator showed A contraction of 0.1% versus a 0.5% growth in the first quarter, worse than expectations for a slowdown in growth to 0.1%.

In the same context, the annual reading of the consumer price index showed a contraction of 0.3% against a growth of 2.2% in the previous annual reading for the first quarter, surpassing the expectations that indicated a contraction of 0.4%, while the substantial annual reading of the same index showed a slowdown in growth to 1.2% compared to 1.8% in The first quarter, worse than expectations for slowing growth to 1.4%.

On the other hand, investors are currently awaiting by the US economy the disclosure of the merchandise trade balance index, which may explain the widening deficit to $ 75.5 billion compared to $ 74.3 billion last May, in conjunction with the release of the initial reading of the wholesale inventory index, which may be Reflecting the contraction of the decline to 0.4%, compared to 1.2% in May.

This comes before we witness the release of housing market data with the release of existing home sales, which may show a slowdown in growth to 15.6% compared to 44.3% in May, while the annual reading of the same indicator may show a widening decline to 10.2% compared to 5.1% in May. May, through to the end of the activities of the Federal Open Market Committee held in Washington via satellite.

Yesterday, we followed the Fed's announcement in a statement coinciding with the activities of the Federal Committee meeting, during which the Federal Reserve monetary policymakers are expected to keep short-term reference interest rates between zero and 0.25% for the third meeting, respectively, of its decision to extend Lending facilities until the end of next December, which were due to expire by the end of next September.

We would like to point out because the Fed made it clear in its press statement yesterday that extending the facilities for three months will facilitate the planning process by the participants in addition to ensuring that the facilities remain available to help the economy recover from the Corona pandemic while stating that the lending facilities provided strong support to the markets and helped to improve the work of the market. Work significantly, and it boosted credit for families and companies in addition to state and local governments.

Technical analysis

The Australian dollar against the US dollar pair returned to rise after approaching the support of the main bullish channel yesterday, to resume its main bullish path, supported by the EMA50, which continues to carry the price from below, waiting for the visit of 0.7200 then 0.7290 levels as the next main targets.

On the other hand, it should be noted that a break of 0.7105 then 0.7065 will stop the expected rise and press the price to start a bearish corrective wave over the intraday basis.

The expected trading range for today is between 0.7120 support and 0.7230 resistance.

Expected trend for today: bullish.