AUDUSD analysis 04.08.2020

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session against the US dollar, following the developments and economic data that is transmitted from the Australian economy and amid looking at the decisions and directions of monetary policymakers at the Reserve Bank of Australia and on the cusp of developments and economic data expected on Tuesday by the American economy the largest economy In the world.

At exactly 02:26 AM GMT, the Australian dollar pair rose against the US dollar 0.01% to 0.7125 levels compared to the opening levels at 0.7124, after the pair achieved its highest level during the trading session at 0.7128, while the pair achieved the lowest at 0.7106.

We have followed on from the Australian economy the release of the Trade Balance Index reading, which indicated the widening of the surplus to 8.20 billion Australian dollars against 7.34 billion Australian dollars last May, without expectations that the surplus would widen to 8.80 billion Australian dollars, and this came with the reading of exports showing An increase of 1%, compared to a decline of 6% in May, and an increase in imports, 3%, compared to a decline of 4% in May.

To reveal the seasonally adjusted initial reading of the retail sales index, which reflected the acceleration of growth to 2.7% compared to the previous reading in May and expectations at 2.4%, and this came amid investors' anticipation of the decisions and trends of monetary policy makers at the Australian Central Bank and the Reserve Bank of Australia revealed a price statement Interest is amid expectations that the short-term benchmark interest rates will be fixed at their lowest level ever at 0.25%.

Otherwise, we followed yesterday Australian Prime Minister Scott Morrison announced that his government had taken a number of measures to address the crisis of a second wave of coronavirus outbreak, including introducing a new system of paid leave that provides paid leave for workers who have completed sick leave and need to remain in quarantine due to Coronavirus and that he will estimate about A $ 1,500 in pay for a two-week vacation due to SK.

On the other hand, investors are awaiting by the US economy, the largest industrialized country in the world, the release of the factory orders index, which may show a slowdown in the pace of growth to 5.1% compared to 8.0% in May, and this comes in conjunction with the disclosure of a statistic of consumer confidence by daily business For investors, which may reflect a contraction in contraction to 45.3 compared to 44.0 last July.

Technical analysis

The Australian dollar versus the US dollar continued the decline yesterday to approach the pivotal support 0.7065, and we notice that the price bounced up from there to indicate the resumption of the main bullish trend, and it needs to break 0.7170 to confirm the return to the upside channel again.

From here, we continue to favor the overall bullish trend with price stability above 0.7065, reminding us that our main awaited target extends to 0.7290.

The expected trading range for today is between 0.7065 support and 0.7200 resistance.

Expected trend for today: bullish.