AUDUSD analysis 21.08.2020

The Australian dollar fluctuated in a narrow range slanting to an upside during the Asian session, to witness its rebound for the second consecutive session from the lowest since August 14, and to promise its ninth consecutive weekly gains against the US dollar following developments and economic data that we followed on the Australian economy and on the cusp of Economic developments and data expected on Friday by the US economy, the largest in the world.

At 04:12 am GMT, the Australian dollar against the US dollar rose 0.15% to 0.7203 levels compared to opening levels at 0.7192, after the pair achieved its highest level during the session's trading at 0.7216, while the lowest level is at 0.7187.

We have continued to unveil the preliminary readings of the Industrial and Service Purchasing Managers' Index (PMI) Markit from Australia, which clarified the reading. The expansion of the industrial sector decreased to 53.9 compared to 54.0 in July, and the service sector shrank to 48.1 compared to an expansion of 58.2 in July. In July, this came before the retail sales reading showed growth accelerated to 3.3, from 2.7% in June.

On the other hand, the markets are awaiting the release of the preliminary reading of the Industrial and Service Purchasing Managers' Index, Markit, on America, which may reflect the expansion of the industrial sector in the largest industrial country in the world to 51.9 compared to 50.9 in July, and the service sector to 50.9 compared to 50.0, before The Existing Home Sales Index reading showed an increase of 14.7% to 5.40 million homes, compared to a 20.7% rise, at 4.72 million in June.

Other than that, we followed, last Wednesday, the Federal Reserve’s disclosure of the minutes of the FOMC meeting held on July 28-29 in which monetary policymakers at the Federal Reserve addressed the fact that the current situation surrounding the Corona pandemic could "severely affect Economic activity, employment and inflation are in the near term and pose significant risks to the economic outlook in the medium term. "

Technical analysis

The Australian dollar against the US dollar found it difficult to confirm the breach of the support of the bullish intraday channel, to show some slight bullish tendency, noting that the stochastic indicator lost its positive momentum to enter overbought areas, waiting to stimulate the price to resume the expected bearish trend for the coming period, which targets the level 0.7065 as a first stop.

On the other hand, we should note that breaching 0.7243 and building a base above it will stop the expected decline and lead the price to resume the main bullish trend again.

The expected trading range for today is between 0.7130 support and 0.7240 resistance.

The expected general trend for today: Bearish.