AUDUSD analysis 18.08.2020

The Australian dollar fluctuated in a narrow, rising range during the Asian session against the US dollar, before the economic developments and data that were followed by the Australian economy and on the cusp of economic developments and data expected today, Tuesday, by the US economy, the largest economy in the world.

At exactly 03:27 AM GMT, the Australian dollar against the US dollar rose 0.08% to 0.7220 levels compared to opening levels at 0.7214, after the pair achieved its highest level during the session's trading at 0.7230, while the pair achieved its lowest level at 0.7210.

And we continued, the Reserve Bank of Australia revealed the minutes of its last meeting held on the fourth of this month, during which interest rates for the fifth meeting were fixed at the lowest ever at 0.25%. As expected in advance, however, financial and monetary support is likely to be required for some time, with an emphasis on maintaining the yields of three-year bonds until progress is made towards full employment and inflation.

On the other hand, investors are currently awaiting the US economy to reveal the housing market data, with the release of both the Housing Starts Index and the Building Permit Index, and amid expectations that the building permits reading will reflect an increase to about 1.33 million permits, compared to about 1,226 million permits in June. In the past, the starting house reading may reflect an increase to about 1.23 million homes, compared to about 1.19 million homes in June.

Technical analysis

The Australian dollar against the US dollar resumed its positive trading, reaching the first awaited target at 0.7243, and moving inside the ascending channel that appears on the image, waiting to surpass the aforementioned level to pave the way for an extension of the upside wave towards 0.7400.

Therefore, we will continue suggesting the bullish trend for the upcoming period, provided that the price maintains its stability above 0.7110.

The expected trading range for today is between 0.7170 support and 0.7300 resistance.

The expected general trend for today: Bullish.