AUDUSD analysis 08.09.2020

The Australian dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its rebound to the second session in three weeks from its lowest since the 27th of last August against the US dollar, following the developments and economic data that they followed on the Australian economy and on the cusp of economic developments and data expected today, Tuesday from The American economy was before the largest in the world.

At 04:18 AM GMT, the Australian dollar against the US dollar rose 0.03% to 0.7279 levels, compared to opening levels at 0.7277, after the pair achieved its highest level during the session's trading at 0.7287, while the lowest level is at 0.7272.

On the Australian economy, we have followed up on the disclosure of the Australian National Bank’s index of business confidence, which showed a contraction of contraction to a value of 8 compared to 14 in July, surpassing expectations that indicated the expansion of deflation to 22, while the reading of the same index indicated confidence in conditions. The current contraction value of 6 versus stability at zero levels in July, worse than expectations that indicated an expansion at 2.

On the other hand, investors are waiting for the US economy to unveil the consumer credit index reading, which may reflect an increase to $ 12.9 billion compared to $ 8.9 billion last June. Otherwise, according to the latest figures issued by the World Health Organization, the number of cases has increased. Coronavirus-infected more than 27 million people and 881,464 people have died in 216 countries.

Technical analysis

The Australian dollar versus the US dollar has shown sideways and narrow-range trading since yesterday, stabilizing around the support of the main ascending channel, noting that the stochastic indicator is gaining positive momentum significantly, waiting to stimulate the price to resume the main bullish trend, whose targets start at 0.7440.

Therefore, the bullish trend scenario will remain valid for the upcoming period unless breaking 0.7230 level and holding below it.

The expected trading range for today is between 0.7225 support and 0.7340 resistance.

The expected general trend for today: Bullish.