AUDCAD analysis 03.08.2020

The Australian dollar fluctuated in a narrow range slanting toward a decline during the Asian session, to witness its bounce for the second consecutive session from the top since February 6, 2019 against the US dollar, following the economic developments and data that it had reported on the Australian economy and on the cusp of developments and economic data expected on Monday by The American economy is the largest economy in the world.

At exactly 02:35 am GMT, the Australian dollar pair fell against the US dollar 0.21% to 0.7131 levels compared to the opening levels at 0.7146, after the pair achieved its lowest level during the trading session at 0.7118, while the pair achieved its highest at 0.7150, with Knowing that the pair started the trading session on an upward price gap after it concluded the trading week and last month at 0.7143 levels.

We have followed on from the Australian economy the release of the manufacturing index reading by the Australian Industrial Group (AIG), which indicated a widening of its value to 53.5 compared to 51.5 last June, and this came before we witnessed the Melbourne Institute (MI) revealed a reading of the inflation gauge index that showed acceleration Growth to 0.9% vs. 0.6% in June, down to a job advertisement reading reading showing slowdown in growth to 16.7% versus 41.4% in June.

On the other hand, the markets are looking to reveal the final reading of the manufacturing PMI by Markit for the United States, which may reflect the stability of growth at $ 51.3, little changed from the initial reading of last month and against a contraction at 49.8 in June, before we witness By the US economy, the construction spending index, which showed a 1.0% increase compared to a 2.1% decline last May, was released.

Up to disclosure by the largest industrial country in the world about the reading of the Institute of Industrial Supply index, which may show a widening of 53.6 compared to 52.6 in June, as the reading of the Institute of Industrial Supply measured in prices may clarify an expansion to the value of 52.3 compared to 51.3, and comes This is before the Fed revealed the results of the most responsible loan survey for the second quarter of this year.

Technical analysis

The Australian dollar against the US dollar is pushing negatively on the support of the main bullish channel, and we notice that the EMA50 is trying to protect the price from achieving more decline, while the stochastic indicator shows clear saturation in selling now, which constitutes positive factors that we expect to contribute to pushing the price to rise again.

Therefore, the main bullish trend scenario will remain probable for the coming period, and targets start to surpass 0.7200 to extend towards 0.7290, noting the importance of holding above 0.7120 and 0.7065 to continue the expected rise.

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

Expected trend for today: bullish.