AUDUSD analysis 10.09.2020

The Australian dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement to the sixth session in eight sessions from its highest since the ninth of August of 2018 against the US dollar following the developments and economic data that they followed on the Australian economy and on the cusp of developments and upcoming economic data today. Thursday by the US economy the largest in the world.

At exactly 03:25 am GMT, the Australian dollar against the US dollar fell 0.22% to 0.7267 levels, compared to opening levels at 0.7283, after the pair achieved its lowest level during the session's trading at 0.7262, while the highest is at 0.7286.

We have followed up on the Australian economy revealing consumer expectations for inflation for the month of September, with the release of the Melbourne Institute reading of consumer expectations for inflation, which showed a decline to 3.1% compared to 3.3% last August.

On the other hand, investors are currently awaiting the American economy for the release of the aid claims index reading for the past week on the fifth of September, which may reflect a decline by 43,000 requests to 838,000, compared to 881,000 in the previous weekly reading. The continuing aid for the past week, on August 29, decreased by 329,000 to 12,925,000, compared to 13,254,000.

This comes in conjunction with the disclosure of inflation data with the release of the producer price index reading, which is a preliminary indicator of inflation, which may reflect a slowdown in growth to 0.2% compared to 0.6% in July, and the core reading of the same index may also indicate a slowdown in growth to 0.2% compared to 0.5%. While the annual reading of the index may show that the deflation has shrunk to 0.3% from 0.4%, and the core annual reading reflects the stability of growth in August at 0.3%.

This comes before we witness the release of the final reading of the wholesale stocks index, which may confirm a decline of 0.1%, unchanged from the previous initial reading for the month of July, and compared to a decline of 1.4% last June, otherwise, according to the latest figures issued by the World Health Organization The number of cases infected with the Coronavirus has increased to nearly 27.5 million, and 894,983 people have died in 216 countries, and research and experiments are still being conducted with the aim of reaching a vaccine.

Technical analysis

The Australian dollar versus the US dollar provided positive trading yesterday, to test the moving average 50, and we note that the stochastic indicator lost its positive momentum to show clear overbought signs, waiting for the price to stimulate the resumption of the expected downside movement for the upcoming period, which targets 0.7135 then 0.6964 as next major stations.

Thus, the bearish trend scenario will remain valid and effective in the intraday and short term, unless the 0.7330 level is breached and stable above it.

The expected trading range for today is between 0.7200 support and 0.7320 resistance.

The expected general trend for today: Bearish.