AUDUSD analysis 07.09.2020

The Australian dollar fluctuated in a narrow range sloping to an upside during the Asian session, to witness its bounce for the second consecutive session from the lowest since 27 August against the US dollar, following the developments and economic data that were followed on Monday by the Australian economy and amid the scarcity of economic data at the beginning of this week The US economy is ranked by the largest in the world due to the Labor Day holiday in the United States.

At exactly 03:58 am GMT, the Australian dollar against the US dollar rose 0.04% to the levels of 0.7285 compared to the opening levels at 0.7283 after the pair achieved its highest level during the session's trading at 0.7298, while the lowest is at 0.7273, knowing that the pair started The session traded on a rising gap, after ending last week's trading at 0.7282 levels.

On the Australian economy, we have followed up on the disclosure of the services index reading by the Australian Industrial Group (AIG), which reflected the widening of the contraction to a value of 42.5 compared to 44.0 in July, and this came before we witnessed the disclosure of Australian labor market data with the release of the index reading. Employment announcements showed growth slowing to 1.6%, from 19.1% in July.

Technical analysis

The Australian dollar against the US dollar made an attempt to break the support of the main ascending channel, but it returns to fluctuate around it, which keeps the bullish trend scenario valid and effective for the upcoming period, and it needs to surpass the EMA 50 to facilitate the task of resuming the upside move that targets 0.7440 then 0.7500 as next major stations.

On the other hand, we should note that a breach of 0.7250 then 0.7225 will stop the expected rise and pressure the price to start a downward corrective wave.

The expected trading range for today is between 0.7225 support and 0.7350 resistance

The expected general trend for today: Bullish